The No 2 Capital Quarter office building in Cardiff’s city centre has been sold for £23 million.

Acting on behalf of developer JR Smart, Knight Frank brokered the freehold sale of the recently-constructed 85,000 sq ft office building to Tesco Pension Fund. Occupiers include Public Health Wales, Opus, WS Atkins and Lambert Smith Hampton.

Gareth Lloyd, partner in the Capital Markets team in Knight Frank’s Cardiff office, said:

“Attracting such a prominent national investor demonstrates the attractiveness of Capital Quarter – and Cardiff city centre – to the UK investment sector. “Independent property specialist JR Smart is changing the face of Cardiff city centre in a relatively short period of time with its office-led mixed use Capital Quarter development.”

JR Smart is currently speculatively constructing two other major Grade A office buildings totalling 170,000 sq ft on the 10 acre Capital Quarter site fronting Tyndall Street. No 3 Capital Quarter, at 79,000 sq ft, will be ready to be occupied in June 2018 – with news of lettings due to be announced shortly – while the 97,000 sq ft No 4 Capital Quarter is due for completion in March 2019.

JR Smart chairman John Smart said:

“We are delighted to have sold No 2 Capital Quarter to Tesco Pension Fund and complete another successful chapter in the Capital Quarter story. Having welcomed new tenants such as Public Health Wales, Opus Energy, Atkins and Lambert Smith Hampton at No 2 Capital Quarter we hope to continue these successes with our new developments No 3 and No 4 Capital Quarter which will be completed shortly and welcome to new occupiers and investors there too.”

More than half a million square feet of new development has already been built to date, and Capital Quarter will total over one million sq ft of development when complete, including offices, hotels, student housing and education uses.