“Jaw dropping is the phrase that comes to mind when I think about The Interchange,” says Tom Roberts, Head of Strategic Investment at Legal & General Investment Management Real Assets. “Now that it’s complete, the residential element of the Interchange is the tallest building in Cardiff. You can see it from so many places in the city centre and for miles around.”
The 120,000 square foot office element, which is now Legal & General’s headquarters in Wales, is the crescendo of a £1 billion investment by the company into the regeneration of Cardiff. Cardiff’s Central Square is the largest privately funded development in Wales, and is run in partnership with Cardiff Council, the Welsh Government and Rightacres.
“The transformation of Central Square from what was a dilapidated corner of the city centre into what is now its commercial heartbeat is remarkable,” says Roberts.
Not only is the regeneration changing the face of Cardiff, but it is also stimulating the economy and injecting vibrancy into Central Square.
Boosting the economy
“This has been one of the most successful regeneration stories in the UK,” says Roberts. The project has already delivered the impressive BBC Cymru Wales broadcasting studio and a 270,000 square foot headquarters for HMRC in Wales, as well as retail space.
In addition to the Interchange office building, which Legal & General has leased for the next 25 years, the final phase of the regeneration project includes a 14-bay bus station and 318 build-to-rent homes.
Roberts, who is from Cardiff, explains what the redevelopment means for the people who live in the city. “Central Square is a 12-acre site that is immediately outside the Central station. We’ve transformed people’s first impressions; previously, when you arrived by train, it was underwhelming to say the least. Now, people’s first impressions are in line with what they should be for a European capital city.”
Another major milestone is the Parkgate Hotel. Legal & General delivered the 170-bedroom facility, located next to the Principality Stadium, in partnership with the Welsh Rugby Union. “Cardiff has suffered from a dearth of new openings of upper scale hotels in the past decade if not 15 years, so the arrival of the Parkgate is a game changer,” says Roberts.
An inclusive model
The economic benefits that this large-scale investment is bringing to Cardiff and the surrounding areas reflect Legal & General’s inclusive capitalism model, which sees us generate returns for shareholders while also making a difference to society. “We talk about the importance of levelling up. Our activity in Cardiff has been delivering that levelling up agenda since long before that was a phrase we used,” explains Roberts.
A physical example of Legal & General’s inclusive approach is the Betty Campbell statue that was unveiled in Central Square in September 2021, which we made a sizeable financial contribution towards. “Betty Campbell was the first black headteacher in Wales and was a real pioneer for the civil rights movement in Wales,” says Roberts. “The statue signifies Legal & General’s on-going ambitions to be involved in projects that have a really positive impact on the built environment, the landscape of our urban areas and of course the inclusive capitalism agenda.”
A new paradigm in office development
Another example of how our socially responsible investing agenda has shone through during the Central Square regeneration is the green credentials on Legal & General’s new Welsh HQ, Calon. The fit out of the building is targeting net zero carbon and we reduced embodied carbon throughout the base build. Our aim is to be certified BREEAM Outstanding, a top sustainability rating.
We'll also be monitoring our actual annual energy performance once the building is operational and are seeking to achieve a NABERS UK rating of 5 stars, which is an independent assessment and rating of the energy efficiency of operational office buildings. If we achieve 5 stars this will confirm that we are on track to achieve net zero carbon in line with the latest scientific thinking.
So how have we achieved this in Calon?
- We’ve installed a 176m2 solar (PV) system, generating approx. 33,000kWh a year – almost enough electricity to power 10 UK homes a year.
- Ensuring all the electricity we use is purchased from 100% renewable sources.
- We have removed gas from the building. Gas is traditionally used in offices for heating and hot water and has a high carbon footprint. By removing gas and replacing it with air-source heat pumps powered by renewable energy we will be reducing the carbon footprint of the building. This means that we will supply the building’s heating, cooling and hot water demand from renewable electricity.
As well as being better for the environment, the building will be better for staff too. “The improvement we’ll see in terms of the quality of the space, and what that delivers in terms of collaboration, employee engagement and staff retention and attraction is absolutely enormous.” Roberts says the roof terrace overlooking the city is a particular highlight.
That the Interchange is the final phase of the larger regeneration project is fitting, according to Roberts. “It isn’t just another investment, it’s our new home. It will enshrine an enduring relationship between Legal & General and Central Square. I know everybody who’s involved is really proud to have secured such best-in-class facilities for the business, but also we’re really proud of the wider benefits that the regeneration has and will continue to deliver for the people and the city of Cardiff.”