API buys

In one of Wales’ biggest investment deals this year, Arlington Property Investors has paid Raglan Properties £21.7m for Hodge House in Guildhall Place, Cardiff.

Hodge House comprises 137,000 sq ft of office space let to HSBC, Barclays, Greene King, 118 Ltd and Hugh James. The property generates £1.5m a year in rent, equating to an initial yield of 6.95%.

The eight-storey building was originally built in 1915 and retains its Grade II-listed façade. There is also a retail unit on the first floor and a leisure unit on the lower ground floor.

Aled Evans of King Sturge, which advised Arlington, commented: “Having tracked the property for two years, it has not been a quick deal. The persistence of Arlington Property Investors has made this significant investment into Cardiff possible and reinforces the institutional demand for the capital city.”

CBGA acted for Raglan Properties.

Source: Freeman News/Property Week

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