Cardiff’s newest prime office building has been sold in one of the most significant office deals outside of London so far in 2026.
No. 1 John Street – which is also the most recently developed office in the entire UK regional office market – has been sold by JR Smart to a private investor. The property was being marketed for around £38 million by Knight Frank.
Located in the heart of Cardiff city centre and forming part of the established Callaghan Square office development, No. 1 John Street is let in its entirety to Lloyds Banking Group, providing a base for its team of 2,500 people in South Wales. The building offers just over 115,000 sq. ft. of Grade A space arranged over 10 floors.
Completed earlier this year, the development of No. 1 John Street was supported by a £15 million loan from Cardiff Capital Region. The best-in-class office has market-leading sustainability credentials, including an Energy Performance Certificate (EPC) ‘A’ rating and BREEAM ‘Excellent’ accreditation, incorporating the use of photovoltaic panels, air handling units, and air source heat pumps.
Handelsbanken has provided funding for the purchase, with legal advice from Hugh James, while the vendor and buyer were represented by Robertsons Solicitors and JCP Solicitors respectively.
Gareth Lloyd, partner at Knight Frank Cardiff, said:
“The sale of No. 1 John Street demonstrates the strength and attractiveness of Cardiff’s office market to investors. The asset is best-in-class from every perspective, with a strong covenant in a blue-chip occupier. At the same time, the city is fast becoming one of the most compelling in the UK from an investment perspective, with resilient demand for well‑specified space, a growing pool of ambitious occupiers, and strong rental growth potential.”
