Delancey Estates is looking to dispose of the 135,000-sf Millennium Plaza leisure development, which is adjacent to the Millennium Stadium in Cardiff. The scheme was completed in December 2001 but it has had a turbulent history. During construction joint venture partner Brunswick Holdings went bust. Then one of the anchor tenants, South African fitness club operator Healthlands, also pulled out after signing for more than 40,000 sf of space.
The remaining developer, Delancey, bought its former partner's stake in the Plaza and bore the brunt of the development costs, estimated to be close to the current asking price. Then last week they signed up Canadian-owned nightclub operator MagiCorp for 22,000 sf. The operator had selected Cardiff for one of its first Lucid venues.
The scheme is now fully let. Other tenants include Ster Century, which anchors the plaza with a 14-screen cinema, and Regent Inns that runs its Bar Risa, Surfers and Jongleurs bars at the plaza.
The four-story building generates annual income of €2.7 million ($3.3 million) and a €34.1-million ($42-million) sale would reflect a net initial yield of 7.53%. Agents for the sale are EJ Hales of Cardiff and FPD Savills.
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