Property developer Cubex has confirmed its interest in acquiring the historic Howells building in the centre of Cardiff.
The Bristol-based firm, which has a strong track record in repurposing iconic buildings into new mixed-use schemes, said it has been monitoring the 270,000 sq ft building as an acquisition target for quite a period of time against the backdrop of the challenges facing the high street retail sector more widely and the continued uncertainly over the building’s only tenant in House of Fraser.
Last month the property asset, owned by Jersey-based Wallace Properties, was put into receivership.
A formal sales process from the receiver Avison Young will be launched in the new year.
The property had been acquired by Naissance Capital Real Estate on behalf of investors in 2016 for £37m, financed by a combination of equity investment and bank debt. The property asset itself and not Naissance was put into receivership.
Now Cubex has confirmed it will formally bid for the asset early next year, with long-terms plans to transform the grade two listed building into a new mixed-use development — with potential for a four star hotel, residential, office and leisure space, with scope too for some retail.
Business development director for Cubex Elgan Jones, who is originally from Cardiff, said: “From our perspective we have been monitoring the site for quite a period of time as a project target. So we are well advanced in the process for a scheme that provides a great opportunity to repurpose such an iconic building in the centre of Cardiff, building on our track record of similar projects such as Finzels Reach in Bristol, which was also acquired out of receivership.”
He said the Howells building couldn’t be developed in isolation, but that any scheme had to create a “sense of place” with each commercial element interconnected.
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Mr Jones said he was unable to say what Cubex would be prepared to offer for the property asset and what level of investment would be needed to redevelop the building, although confirming that it would be substantial. A leaked report from consultants Gleeds last month revealed that the cost of renovating the building would be around £25m for basic repairs and up to £45m to incorporate a hotel and other developments
Mr Jones added: “We are well financed with funding from a variety of sources, who will work with us through planning and for long-term success if we are able to acquire the site from the receivers.”
He said any development could take between 4-5 years to complete, with the first phase on securing planning taking between 12 to 15 months.
Mr Jones said: “We would bring everyone together, Cadw, the local authority, various business stakeholders and the public, on a journey to create a sense of place and accessibility for such an iconic building, similar to our Finzels Reach project in Bristol.
“This would not be a quick win, but a scheme that you have to live and breathe for the long-term. Yes, repurposing the building will require deep pockets, but it is more about passion.”
He said while Cubex anticipates rival interest for the asset, the nature of transforming a listed and existing building meant there was likely to be less developer interest than if for an easier option of a new build project.
While it would be determined by operator interest, Mr Jones said the building could provide for a quality hotel build in the four star category.
Mr Jones said: “We will also look at residential and the opportunity to bring people back into the city centre and the wider trend towards more urban living and not students flats. However, there has to be amenities, like education facilities [close by] and not just thinking around building another block of apartments.”