Propco Developments Limited has completed the second phase of Waterside Business Park with all eight units on the Lamby Way site in Rumney, Cardiff now fully let or sold.
Part-funded by a six figure loan from the Development Bank of Wales, phase two is a £1.5 million site that includes eight industrial units. Six have been sold to occupiers that include Richard Kemble Ceilings, Puma Floors and Absolute Performance with two units having been let on ten year leases.
Propco first developed phase one of Waterside Business Park in 2007 which consists of 18 similar sized flexible use units. For this second phase BECT Building Contractors were engaged to build out the one acre site. The total development now features 26 units ranging from 1,200 to 3,500 square feet. Offering excellent road links, the high specification units include separate pedestrian and roller shutter door access. Cushman and Wakefield and Jenkins Best were engaged as joint agents for the site.
James Coombs is Managing Director of Propco Development commented “Commercial sites of this nature are often developed on a speculative basis and as such can prove challenging when trying to secure funding. This coupled with the additional challenges of Covid meant that this site could easily have stalled if it weren’t for the support of the Development Bank of Wales.
“The funding has made a huge difference to us; giving us the comfort and certainty to continue with the development this year at a time when the property and construction sectors have been so heavily impacted by Covid-19. What’s more, the speed of turnaround was hugely helpful meaning that we could proceed with work on site without delay.”
Nicola Crocker, Deputy Fund Manager: “Waterside Business Park in Wentloog is one of Cardiff’s premier multi-let industrial and distribution locations with many quality occupiers who value the excellent transport links. Although a speculative development, it is no surprise that phase two has already been fully sold and let.
“Our commercial property fund is designed to support developers of new office and industrial space in Wales; backing speculative developments and non-speculative schemes with the ability to help address viability gaps on qualifying schemes. We look forward to supporting James and Propco further as they continue to develop their portfolio of high quality commercial properties.”
Economy Minister Ken Skates said: “The Development Bank of Wales has played a crucial role in supporting our businesses during what has been an incredibly challenging year. Not only have they delivered more than £135 million to Welsh businesses to help them through the pandemic, they have also worked tirelessly to ensure important projects such as this can happen.
“The fact all of the units at this development are fully let or sold already shows just how much demand there is in Wales for them, and why it is so vital we are able to provide the necessary support needed to help make them a reality.”
The £55 million commercial property fund is managed by the Development Bank of Wales on behalf of Welsh Government and can provide an element of grant funding alongside a repayable loan to help address viability gaps. Loans from £150,000 to £5 million are available for short-term residential, mixed use and commercial developers in Wales.