Central Square

Thinking about it, that's the problem I have with giant multiplexes. If there is no competition and I'd say there isn't in many places, what's to keep the prices down? Obviously it's in competition with other leisure activities but only so far.

What exactly is so bad about it?

Well in Cardiff the competition for Mulitplexes is... other Multiplexes. Cardiff actually has a very high ratio of screens to population so cinema prices were lower here than in most places even before Premiere opened. I think I'm right in saying that only around half the screens in Vue are in use due to over capacity.

I can't say I share Simon's view of Premier. I've only been there once and it seemed pretty comfortable with better sound quality than Vue. Maybe some of the other screens aren't as good as the one I was in. It was pretty busy too - they seem to have cornered the student market.

Premiere Cinemas is a small operation - they've only got 1 other in Romford. I think there was a figure of 1 million pounds quoted for the Cardiff fit out - a rather substantial sum for a company that's not one of the giants such as Odeon or Cineworld. The 5 screens have the same layout as the original Odeon screens that were there - I first went there to see Point Break in 1991. Personally I'm glad to have the opportunity to see films at a multiplex for a reasonable price again. Cardiff Odeon was charging £11 to see Star Wars. I'm not willing to pay so much extra just to see a film on a "bigger" screen.

I've heard that number 1 should be fully let very (very!) soon and that #2 is almost agreed for L&G (who have just agreed a temporary let on another 2 floors of Brunel House as they relocate away from Surrey). Marland House should be history in the next 2 months, all that remains is Burger King who asked to stay to the very end. Hopefully this will spur on the rest of central square around the old western mail building.

Here it is then:

A car finance firm is to create nearly 600 jobs in the centre of Cardiff.

Rapidly-expanding MotoNovo is moving its headquarters across the city and planning to more than double in size over the next few years.

The company, owned by a South African bank, is relocating from Llanishen to Central Square in the city centre.

It joins a bank and a legal firm in the same office block being built next to Cardiff Central railway station.

http://www.bbc.co.uk/news/uk-wales-35803346

I've heard that number 1 should be fully let very (very!) soon

All hail the prophet!

MotoNovo, whose ultimate parent is South African-based FirstRand – which owns First National Bank and Rand Merchant Bank –is taking 71,000 sq ft of new space, across five floors, at the 1 Central Square office scheme in the centre of Cardiff.

http://www.walesonline.co.uk/business/business-news/car-finance-firm-set-create-11038792

I've heard that number 1 should be fully let very (very!) soon and that #2 is almost agreed for L&G (who have just agreed a temporary let on another 2 floors of Brunel House as they relocate away from Surrey). Marland House should be history in the next 2 months, all that remains is Burger King who asked to stay to the very end. Hopefully this will spur on the rest of central square around the old western mail building.

I hope you're right about L&G but I'm not so sure. I was speaking to a manager there who says that car parking for the senior bods would have been an issue so they are staying put. As I say I hope you're right.

Great news about Number 1. So that's MotoNovo, Julian Hodge Bank and Blake Morgan taking all the space I guess. Not bad going for a building that's only just been completed.

I'll believe the L&G news when I see it. We've read so many stories over the years, often conflicting rumours as well, about them being one of the companies looking at one scheme or another and they always stay put and expand into nearby space instead. The difference this time I suppose is they are relocating lots of jobs here. I also remember reading that if they do move they would want two separate offices, so I guess they could move some staff into a shiny new office at Number 2 and leave everyone else the other side of the city ? Either way the fact that they are moving roles here is still good news for the office market whichever office they take up space in.

. Hopefully this will spur on the rest of central square around the old western mail building.

You make a good point about the plots north of Wood Street actually, in the main that whole part of the scheme is earmarked for student accommodation and residential, with a bit of commercial space (possibly retail).

Let's say that L&G do take Number 2 and then HMRC take the office space at The Interchange above the bus station, all of a sudden all the planned office space at Central Square is taken isn't it ? I know the thought of both those organisations taking those buildings is just speculation at the moment, particularly HMRC who you can imagine possibly wanting cheaper rent than Central Square would cost, but if they do then that's Central Square done and dusted. It would leave just the plots north of Wood Street, which as I say are generally not for offices.

It'll be interesting to see what Rightacres do with those plots and if they do continue to use them for residential if interest is as high as it seems it might be.

I'm guessing the prospect of MotoNovo signing, plus other tenant interest, prompted Rightacres to buy the plot next to Fusion Point (aka Confusion No Point).

I also wonder whether JR Smart have been, ahem, smart in waiting to announce plans for John street for the same reasons; or whether they've just taken a gamble on demand suddenly outstripping supply. I wouldn't be surprised to see this site developed before the residential one on the other side of the railway line.

It will also be interesting to see whether the Welsh government's plans to sell its Callaghan Square plot come forward sooner rather than later if more of Central Square gets quickly snapped up.

If something goes to make way for more commercial space in Central Square it will be the private resi as opposed to the student resi I think. Apparently rates of return on student resi are a couple of percentage points higher than private resi at the moment - at least in prime student sites.

To see why, you get students paying £120 a week for a pretty small en-suite room and access to a shared kitchen/lounge. OK you get internet and other utilities included. But, say £15 a week for that tops... So net rent of £105 a week, or £450 a month. You get 6 of these students in a cluster flat and thats £2,700 a month. You could rent two three-bed houses for something like what, £1,600 a month?

I don't really see why students are choosing these student blocks given the excessing rents. Is it simply that the current generation of students just aren't ready for the big bad world where you have to pay your own bills? Or is an ensuite room really worth that much more?

Good news re: 1 Central Square. I think 2 Central Square should be at least partially let soon. The fact they increased the size in the submission of reserved matters suggests there is significant interest. Whether or not it will be LG I'm not so sure. Might they move part of their workforce there and occupy part of the building? Keep the staff carrying out simpler, less well-remunerated staff in older cheaper accomodation (and actually Queen St might be a better location for many of the workers commuting down from the Valleys).