1 week Ago By [email protected] (Sion Barry)
The developer behind one of the largest grade A office schemes in Wales has secured a £15m loan from the Cardiff Capital Region to complete construction work. Family-owned property development firm JR Smart has been backed with funding from the city region’s Strategic Premises Fund for its 114,000 sq ft Cardiff city centre John Street 10-storey office scheme. Last year Lloyds Banking Group agreed a long-term lease to occupy the entire building.
While the external structure is completed, there still requires significant internal work, such as mechanical engineering related. Lloyds has agreed a 15-year lease, with a break after ten, at just under £30 per sq ft. Knight Frank acted for JR Smart on the letting with CBRE representing Lloyds.
The £50m Strategic Premises Fund from the city region, made up of the ten local authorities of south-east Wales and funded by its now nearly fully committed £1.2bn City Deal from the UK and Welsh governments, is evergreen with interest and capital from loans made reinvested to back other building and infrastructure projects. The new headquarters building for Lloyds will be able to accommodate 3,000 staff in various teams providing customer service and support services to many parts of the group.
JR Smart is expected to complete work on John Street this December, which following a fit-out will see Lloyds taking occupancy of the entire building in the summer of 2026. Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said: “This investment in new office space at John Street in Cardiff will support key priorities such as business growth and regeneration for the regional economy. “We continue to actively explore opportunities to work collaboratively with the Cardiff Capital Region in order to deliver significant economic benefits.
” Wales Office Minister Nia Griffith said: “I am very pleased to see the UK Government’s investment in the Cardiff Capital Region. This will help to deliver on our economic growth mission, a vital part of our plan for change. “This development, along with improved transport links, will provide fantastic facilities to encourage businesses to base themselves in Cardiff and to expand, helping to create new jobs and put more money in people’s pockets.
” Andrew Morgan, leader of Rhondda Cynon Taf County Borough Council and the city region’s portfolio lead for the Strategic Premises Fund, said: “This investment plays its part in further developing exciting and environmentally sustainable office space that national brands wish to take up, adding to the long-term inclusive growth in our region. Our vision to connect communities, services and businesses continues to develop and our interventions in office space and transport links have a key transformative role.” George Richards, senior director, CBRE Lending, who manage the Strategic Premises Fund on behalf of city region said:“This is a pivotal investment in the region, which aligns with the fund’s core objectives of job creation, private sector leverage and the delivery of new employment space.
The outstanding ESG (environmental, governance and social) credentials of the building meet the Cardiff Capital Region’s sustainability objectives, and their continued journey towards net zero.”.
