The leader of Swansea Council has explained why the opening of a flagship office building, which he said had generated significant interest among potential tenants, has been pushed back.
Cllr Rob Stewart said additional works took place at 71/72 The Kingsway after the initial “practical completion” date of March 31 this year, and that damaged cables on the lane at the rear were also identified.
He had been asked to clarify the situation in a written question by Uplands Party councillors, who also wanted to know how much of the building had been pre-let to tenants.
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The councillors’ question quoted previous statements by the Labour administration about when it would open and how much space had been let. The question said that in a meeting last month the leader said “as we get to October we’ll see 71/72 The Kingsway open” and that “we’re very close to announcing the first tenants”.
In a written response Cllr Stewart said in April this year cabinet had requested that the contractor, Bouygues, fitted out the building. He said this work has had pushed back the practical completion from the end of March to early August. Cabling on Picton Lane, at the rear of the new building, was also found to have been damaged and disconnected to street lights. Cllr Stewart said this damage occurred prior to the project starting and has been rectified.
“Both of these changes provided the most effective and efficient way forward to complete the scheme and avoid delays or follow-on works,” he said.
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The Swansea Labour leader said heads of terms agreements with tenants had been provisionally agreed for 70% of the office building, and added: “We anticipate that once leases have been concluded, some tenants will commence their specific fit-out activities before the end of the year.”
71/72 The Kingsway has risen from the site which was once home to the Oceana nightclub. The aim is to provide high-quality office space that the council has repeatedly said Swansea was short of. Work started at the end of 2021 and the building is expected to have enough space for around 600 workers. Delays to large projects aren’t uncommon.
Cllr Stewart said the authority had invested £24.6m in 71/72 The Kingsway, with a £13.7m central government contribution coming via the City Deal for the Swansea Bay region.
The city deal seeks to boost economic growth and involves central Government, regional public sector and private sector funding.
The City Deal has also contributed £22.8m towards the construction of Swansea Arena and a proposed new hotel next door. Cllr Stewart said the city deal had been a catalyst for several private investments in the city centre such as new flats and a large office building on the corner of Princess Way and St Mary’s Street.
Cllr Stewart said the council would evaluate the economic impact of the arena, which opened in 2022 and is the centrepiece of the £135n Copr Bay development, next year.
Meanwhile a commercial property consultancy said Swansea was experiencing one of the strongest office rental growth rates in the 海角视频. The analysis by CoStar said office vacancies in the city stood at 3.5% - the lowest on record - significantly less than Cardiff’s 8% vacancy rate. It said Swansea only had a quarter of Cardiff’s office space - but new developments are coming to fruition such as the refurbished Palace Theatre on High Street as well as 71/72 The Kingsway.
“The delivery of new space in Swansea’s central business district this year is expected to attract interest from local businesses looking to future-proof their presence in the city,” said a Co-Star spokesman.