The tallest office building in Cardiff, Capital Tower, has been sold for a mere £12.35 million to the Topland Group.
The tower along with the neighbouring Friary House, was built in 1967 on the site of a ruined friary which had much of its ruins still standing until the site was cleared in 1955, something that at the time was considered an act of historical vandalism.
Until recently Capital Tower was the tallest building in Wales with a height of 80 metres although that has now been surpassed by Meridian Quay in Swansea. Nonetheless, it remains the tallest building in Cardiff for now.
Together Capital Tower and Friary House consist of approximately 18,000 square metres of office space, plus a multi-storey car park and a small amount of leisure space. Of this about 11,600 square metres of space is within Capital House itself.
The two buildings are 94% let to various commercial tenants including Admiral Insurance who have made it their headquarters. Admiral however started construction on a new headquarters on Bridge Street in May 2012, and intend to have finished moving out of Capital Tower in the winter of 2015.
This may be one of the factors that is reflected in the substantial discount achieved for the property compared to a previous purchase in 2002 where Aberdeen Property Investors picked it up for £17.4 million.
Having paid cash, Topland will now be considering longer-term strategies for managing the property which could include the redevelopment or re-cladding of the building, something that is hardly unexpected given it is approaching the 40th year of its life.