Fidelity International buys Cardiff office for £8.8m
Fidelity UK Real Estate Fund has purchased a prime office, Fusion Point 1 at Tresillian Terrace, in a £8.8m transaction.
The deal represents a net initial yield of 10.4% and £138 per sq ft.
Sold on behalf of M&G Real Estate, the property occupies a prime office position, located north of Cardiff Bay within a four minute walk of Cardiff Central train station.
Built in 2005, the building is let to 118 Ltd and offers in excess of 63,000 sq ft of Grade A office accommodation over four floor levels. The property is located adjacent to the multi tenanted Fusion Point 2 which was purchased by the Fund in January 2014.
Savills acted for M&G in the sale of Fusion Point 1.
Alison Puhar, director, UK Real Estate at Fidelity International said: “We believe strongly in the resilience of the Cardiff office market and the opportunity to add to the fund’s existing ownership in this location at attractive pricing fitted well with our strategy for the fund.”
“The significant planned and ongoing investment into the regeneration of the area to the south of Cardiff Central train station will mean that the Fund’s holdings will be ideally placed at the heart of an extremely attractive and vibrant regenerated mixed use location,” Puhar added.
The Fidelity UK Real Estate Fund is aimed exclusively at institutional investors. The fund invests solely in the United Kingdom. Since its inception in 2008, it has outperformed the IPD UK PFI – All balanced Property Fund Index by 2.2% p.a. and has a GAV of £447.5m.