Ardstone Capital advised by JLL sell a landmark Cardiff office building for £13m (April 2020)
Ardstone Capital has completed the sale of 2 Kingsway in Cardiff city centre to a private client of Delancey on 14 April. This prominent, Grade A office building comprises 39,000 sq ft and is situated at the heart of the city’s CBD, with views overlooking Cardiff Castle. The 6 storey building was fully refurbished by Ardstone and is multi-let to tenants including Monzo Bank, St James’ Partnership and Savills.
The sale at £13m reflects a net initial yield of 6.25% .
2 Kingsway was bought on behalf of the Ardstone Regional Office Fund, a programmatic joint venture with CBRE Global Investment Partners (CBRE GIP). The building has been completely renovated with a full refurbishment including repositioning the main core and stairwell and a new double height reception providing views over Cardiff Castle.
Michael Cecil, Head of Asset Management at Ardstone Capital said: “We are thrilled with the transformation of 2 Kingsway since it was acquired back in 2014 and its success has been reflected by a strong tenant line-up who have chosen the building as their Cardiff home”
International property consultancy JLL advised the vendor. Justin Millett, Lead Director of JLL’s Cardiff office, commented: “JLL is delighted to have acted for Ardstone on this sale, particularly having helped them redevelop and then let this high profile asset. 2 Kingsway demonstrates continued investor demand for both repositioning opportunities and fully refurbished office investments in Cardiff. The city has enjoyed strong occupier demand, together with impressive rental growth and continues to draw interest from both UK based and international investors.”
John Kehoe, Investment Director of Delancey commented: “We are happy to have secured this asset on behalf of our client. We are confident the acquisition will continue to provide a diverse, resilient income stream that meets with their investment objectives. We look forward to sourcing and securing further attractive investment opportunities on behalf of this mandate.”
Avison Young acted on behalf of Delancey.