Car insurance to loans group, Admiral, has acquired Admiral House in the centre of Newport in a multi-million-pound deal.
The FTSE 100 company has bought the freehold interest in the office scheme from US real estate investment trust W.P. Carey. The exact value of the deal has not been disclosed, but is one of the biggest office property transactions in Wales over the last 12 months.
Admiral took the decision, as part of a property review of its entire property estate due to an acceleration in hybrid working practices as a result of the pandemic, to mothball its operation at Admiral House in 2021. The move didn’t have any impact on staffing levels.
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Admiral, which employs more than 7,000 in South Wales, still had around 7 years to a break clause on the lease with W.P. Carey - having entered into a 20 year deal back in 2014. That agreement saw it taking occupancy of the whole of the 84,000 sq ft building. Acquiring the building is a smart move as it means as landlord it is no longer liable for rent which had a cost of around £1.3m a year.
Admiral appointed property consultant Huw Thomas to market the space, for sub-letting or lease reassigning, after vacating the building. With Admiral having no plans to return, under its new ownership it will continue to market the building for rent, as well as for sale.
W.P. Carey acquired what was then a new build and forward developed specifically for Admiral to occupy, for £20m from Scarborough Group in 2014.
An Admiral spokesman said: “Towards the end of last year, a commercial business opportunity was presented to us to purchase Admiral House. We decided to agree to the purchase, making us the building’s new owners. This doesn’t mean anything will change for our colleagues, and we won’t be looking to return any of our own people to the building.
"The decision to purchase was based on having more control over the lease liability, and the building’s occupancy and any associated costs, therefore being a more economical option for the long term. As the new landlords, we’re continuing to market the building to be sold, sublet, or rented.”
Property advisory firms Knight Frank, through capital markets partner Gareth Lloyd at its Cardiff office, and Acre Capital Real Estate, acted for W.P Carey on the freehold investment sale to Admiral.
The building, which more than 200 basement car park spaces, extends to seven floors.
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