The developers behind a major development in Newport say they "remain committed" to delivering the rest of the project despite work yet to begin years after planning permission was granted. Admiral House in Newport opened in June 2014 as part of major plans to build a development known as the Station Quarter near the city's train station.
The six-storey, 80,800sq ft office block on Queensway was heralded as a much-needed step towards enhancing the city's economy when it opened, but the company delivered a blow when it announced last November it would be leaving permanently. At the time it said it had made the decision based on a move towards "hybrid" home working after the Covid-19 pandemic.
Its offices based in Capital Quarter in Cardiff will close "over the course of 2022", but offices at the Ty Admiral and Capital Tower, as well as in in Swansea city centre and Llansamlet, will remain. 50% of Admiral workers in Newport left in January this year and it will fully vacate the site completely from 2023.
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The move was met with dismay from many in Newport, who have questioned what cities and towns like it will look like in a post-pandemic world where home-working or hybrid working are more common. To get the latest Newport news straight to your inbox every day, sign up for our NewportOnline newsletter here.
Attention has also turned towards both what might replace Admiral at its current building and the rest of the Station Quarter development. Last year WalesOnline covered the shopping units next door to Admiral House which have been left empty ever since they were built, and there are ongoing plans for another 53,075 sqft of office space next door. Led by Scarborough Development Group, planning permission for the new block was granted by Newport City Council in 2016, but construction has yet to commence six years later.
What has the company said about the Station Quarter and Admiral?
With little movement on either the empty units or any sign of construction on the second office building, WalesOnline asked the developers about plans to fill the Admiral building and completion of the Station Quarter.
Jack Abou-Jaoude, senior development manager at Scarborough Group, said it had seen a "significant uptick" in enquiries for the vacant units in recent months but that Brexit and the pandemic had impacted on the development's progress.
"The impact of the global pandemic coupled with the fallout from Brexit stagnated growth and productivity across the entire UK economy, not just south Wales, and it will take time for confidence to be restored," he said. "However, we have witnessed a significant uptick in the number of enquiries from potential occupiers in respect of the vacant units at Station Quarter in recent months, and we hope to be in a position to announce new lettings in the not-too-distant future.
"While Admiral’s phased departure from Newport is a significant blow for the city centre, this is less a reflection of the location and more a structural change in businesses’ workplace practices. Station Quarter is a strategic gateway site which creates an important link between the train station and the city centre and we remain committed to delivering our ambition for the next phase of development, which will include a 53,000sq ft office building. We are now taking the time to consider how we position the space so that it is better-suited to more agile working practices."
Has Newport City Council said anything?
Newport City Council has not said much about the future of the Admiral building, but in its most recent economic growth strategy update in January 2022 it said the city "remains positioned as a strong contender to capitalise on demand for office space" from companies looking to relocate. It said there had been a "high level of interest" in the building since Admiral's announcement and that it was working with the company to fill the space.
"Newport remains positioned as a strong contender to capitalise on demand for office space from companies looking to relocate to more accessible and strategic locations," the report read. "Capturing the interest of these occupiers in part rests on the operating models of businesses first stabilising and them understanding their needs. We have seen this start with the decision of Admiral to rationalise their estates portfolio.
"Whilst this has seen the partial closure of their city centre building, there has been a high level of interest in this space and we work with the company to bring in new and expanding businesses into the city centre. We have a strong offer in Newport, presenting an opportunity for an outstanding quality of life and more affordable housing. The potential workforce within an hour of Newport has been a key consideration for previous inward investors in the past and as we strengthen, grow and adapt our skills base to ensure that it reflects the needs of existing and new employers and businesses, we will ensure that Newport and its workforce are well positioned for the future."
