SPOTLIGHT ON WALES WWW.PROPNEWS.CO.UK
Times are a changing
2008 has been a period of significant change in the commercial property
market. But the signs are that Wales has withstood the worst effects of
the credit crunch and can look forward to better times ahead.
The first half of 2008 represented a
period of significant change for the
Welsh property market according to
King Sturge.
Chris Sutton commented: "We have
come to appreciate how the global winds
of change can, so rapidly, affect our
region with the tightening of the credit
markets and at the same time interest
rates remaining firm due to the continued
threat of inflation.
The weak pound gives some relief to
our manufacturing sector however, the
state of the US economy leads directly to
pressures on the significant number of
US owned industries in south Wales."
The good news for Wales is that the
negative impact of the credit crunch has
not been as severe as experienced
elsewhere in the UK with strong take-up
in the prime office sector with Centrica
taking the headlines with its 68,500 sq ft
pre-let at Callaghan Square, Cardiff.
In addition, there has been continued
investment in our retail centres, most
notably the ongoing construction of the Fountain Court, Cardiff
£700m St Davids 2 retail scheme in
Cardiff.
This joint development between Land
economies in recent years. venture by two of the region's leading
Securities and Capital Shopping Centres
"The economies of eastern Europe property and financial names.
is currently the largest private financial
are not quite so low cost as they once Fountain Court, launched to south
investment in Wales. Providing 1.4 million
were and the availability of skilled labour Wales agents in the last few days, has
sq ft of shopping when combined with
in these emerging markets is under been developed by Wingwest (Fountain
the existing St Davids centre the new
scrutiny," said Chris. Lane), a joint venture headed up by Ken
scheme, which opens in 2009, will be
New speculative industrial Haines and Paul Ryan of developer
anchored by a 260,000 sq ft John Lewis
development remains a buoyant sector Wingwest in partnership with Jonathan
department store.
for the Cardiff market with developers JR Hodge of Carlyle Property.
According to Stephen Jones, retail
Smart (Builders) Ltd and Charnwood It offers two superb units of
partner at King Sturge, the intention is
Group being the most active. 10,500 sq ft offering flexible
that the new centre will propel Cardiff
Developer JR Smart has embarked accommodation, capable of being split
from 11th place to a UK top five retail
upon the final phase of its multi million into suites of 1,500 sq ft and more,
destination.
pound 75 acre flagship business site,
together with generous car parking in an
The development will add more than
Capital Business Park, Cardiff. This latest
attractive setting. Easily accessible from
100 stores to Cardiff city centre together
phase will see a further 81,000 sq ft of
the M4, the units are available for let or
with numerous apartments and catering
industrial space comprising both
purchase.
units and will include a new 50,000 sq ft
industrial and business units.
Jonathan Hodge said: "These high
library.
quality buildings really tick all the boxes
At the nearby Queens Arcade
CARDIFF
for discerning occupiers, with their
Shopping Centre, a £2.3m refurbishment Cardiff's first purpose-built business park
thoughtful and efficient design and layout,
programme was undertaken in early 2008 is enjoying a new lease of life.
attractive surroundings with mature
including new mall finishes, redecoration Thanks to substantial private sector
landscaping, superb communications and
and improved lighting. The centre has investment in recent years, the St Mellons
pleasing external appearance.
welcomed Bravissimo's first Welsh outlet Business Park has re-emerged as a prime
They should appeal especially to
which has provided further support to the location for blue-chip occupiers.
occupiers in the professional services
centre! Its tenant profile is now firmly
sector or, indeed, to any organisation
In the industrial sector the high point established as the most impressive of
that wants a first-class environment for
of the year to date has been the attraction any business location in south Wales -
its staff and clients"
of Amazon UK to Jersey Marine, Swansea from high-tech pioneers such as IQE and
Paul Ryan added, "Our development,
where it has established an 800,000 sq ft Accelerate Technologies to class-leading together with others in the area, has
internet fulfilment warehouse. professionals such as Hyder Consulting created the critical mass for the re-
According to Chris Sutton south and Powell Dobson. emergence of St Mellons as a premier
Wales retains a critical mass of The latest addition to the business business park location.
manufacturing, not withstanding park's stock of Grade A offices is the Fountain Court offers an attractive
'manufacturing shift' to lower cost 21,000 sq ft Fountain Court, a joint green environment in which to work, while
14 Property News August 2008
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