Knight Frank acts in purchase of No 2 Callaghan Square office building in central Cardiff
Property consultancy Knight Frank has acted in the acquisition of one of Cardiff city centre’s ‘trophy’ buildings – No 2 Callaghan Square – on behalf of a joint venture between August Capital Partners and Magwich UK Ltd in a multi-million pound deal.
The freehold of the five-storey 43,905 sq ft Grade A multi-let office building was sold by an undisclosed vendor, represented by Newmark.
Callaghan Square is situated adjacent to Cardiff Central railway station and within walking distance of Central Square and the city’s retail core. Current tenants of No 2 include Handelsbanken PLC, Clarke Willmott, FTAI Airopco, Mott Macdonald, DarntonB3, and Church in Wales.
Gareth Lloyd, partner in Knight Frank’s Capital Markets team in Cardiff, said: “We were delighted to act on this acquisition. 2 Callaghan Square has always been regarded as one of the premier office buildings in Cardiff and has really stood the test of time since it was developed just over 20 years ago.
“Knight Frank has a long history with the building, having been involved in its sale and acquisition on three previous occasions, as well as undertaking the Leasing and Building Consultancy throughout this time. This purchase comes at an exciting time in the market. We are now in the start of a new cycle with pricing and investor sentiment improving for well located offices.”
Mark Sutton, partner in the Knight Frank office agency division in Cardiff, said: “Following a strong 2024 with record office rents being set and the highest Cardiff take up since 2017, there is increasing occupational demand for prime office space and supply is tightening as a result.
“Having witnessed the appeal of 2 Callaghan Square first hand as leasing agents over the past 10 years, we know the new owners have exciting plans for the building which will be hugely attractive to current and prospective tenants.”
Nick Lloyd at August Capital Partners, said: “We are delighted to have completed the acquisition of this asset during Q1. Whilst the fundamentals of location and build quality were attractive we believe the combination of short supply and a discerning corporate occupier base means the market will be receptive to the exciting refurbishment plans we have to improve the user experience for existing and new tenants at 2 Callaghan Square and look forward to bringing these forward during 2025.”
