Cardiff city council is seeking a development partner for an 800,000-square-foot mixed-use development on part of the Atlantic Wharf regeneration site in the heart of the Welsh capital.
Knight Frank and CBRE have been appointed to market the 11.3-acre site, which is home to the Red Dragon Centre, a 1990s leisure destination with occupiers including Odeon, Hollywood Bowl, Grosvenor Casino and Five Guys as well as adjacent land.
Cardiff council wants to see a mix of commercial and high-density residential uses developed as an extension of Cardiff Bay and complementing a planned 15,000 capacity arena. It is proposing a leisure complex including bowling, homes, a cinema, an event square and then mixed-use development.
The site lies between Atlantic Wharf and the Millennium Stadium, Wales's national stadium. Bids are being called by a deadline of 9 November for a new 250-year long leasehold interest.
Cardiff City Council completed its acquisition of the freehold interest in the Red Dragon Centre from the British Airways Pension Fund for £54.6 million, reflecting a net initial yield of 5.47%, in April 2020. The council first confirmed it would complete the acquisition on 17 December 2021.
The acquisition had long been key to the council's aspirations for an arena in Cardiff Bay at the heart of a £500 million regeneration scheme.
The 13-acre plot of land forms part of a 30-acre redevelopment at Atlantic Wharf including a relocated County Hall. The Red Dragon centre would be demolished and tenants relocated.
In total the site will include around 1.65 million square feet of mixed use development including restaurants, office, residential, hotel and cultural uses adjacent to the arena.
Cardiff council secured a hybrid planning permission for the delivery of the mixed use masterplan in February 2023.
The arena, which will be delivered and operated by Live Nation, will form the first phase of regeneration. Construction is forecast to start in early 2024 and is scheduled to open in 2026.