Cardiff and Vale College has bought one of the biggest office buildings in the centre of to support its expansion plans. The college, which is the third biggest college in the º£½ÇÊÓƵ and the largest in Wales, has acquired St William House.
The building is just yards from its existing city centre campus on Dumballs Road.
The post-16 education provider, which generates annual revenues of £120m, has acquired the freehold interest in the building, which extends to 144,000 sq ft, from Schroders. The value of the deal has not been disclosed, but is understood to have been for around £8m. The building was being marketed with a £15m price tag.
St William House is currently vacant. Former sole occupier Lloyds will soon begin relocating to a new 10-storey office scheme on John Street - close to St William House - that has been developed by JR Smart. Since exiting the building Lloyds has been operating from its office site ahead of a move to the new HQ.
The college said its new location will provide high-quality, industry-focused teaching facilities across multiple sectors to support economic development in the Cardiff Capital Region. The development will be delivered through the Welsh Government's Sustainable Communities for Learning Programme, subject to funding approval.
As well as its main campus on Dumballs Road, which opened in 2015, the college's other locations in the city include a community sports facility at Canal Park plus a large base in One Canal Parade, and its Arts Academy on neighbouring Trade Street.
The acquisition of St William House coincides with the college's £119m investment that is delivering new campuses in the Vale of Glamorgan for thousands of students. Its new waterfront campus, a community-focused college in the heart of the town, will replace its existing ageing Colcot Road campus. Its Advanced Technology Centre near Cardiff Airport will meet the skills needs of employers, apprentices and those working in advanced technologies. Both campuses are scheduled to open in September 2027.
The college currently has more than 33,000 students, a number that continues to grow.
Cardiff and Vale College group chief executive Mike James said of its property acquisition: "We are delighted to have secured this landmark building. Over the last decade this area has proved a popular, vibrant and accessible location for the community and employers across our region.
"The prime location and scale of this site provides incredible potential to further support us to improve the quality and sustainability of our estate in a cost-effective way and grow the high quality teaching and learning we offer."
The college's new campuses in the Vale are mainly being financed through the 's mutual investment model (MIM), with construction costs repaid over a 25-year period. The college's committed financial contribution to both projects is around 19%, which will include proceeds from the sale of its existing Colcot Road campus site. It is the first time the Welsh Government has used MIM to fund a college project.
