L&G signs £400m Cardiff Central Square regeneration deal

Legal and General has signed a £400m deal to back the redevelopment of Cardiff city centre, the financial services firm has announced.

The company has entered a partnership with property firm Rightacres to deliver the project.

The Central Square project next to the railway station will see BBC Wales move to the site and new offices opened.

Chancellor George Osborne said the partnership was a "major vote of confidence in the Welsh economy".

About 10,000 jobs could be created as a result of the project.

'Transform'

One Central Square, the office development, is set to be completed by 2016, while the BBC has said it plans to move in 2019 to its new building on the site of the former bus station, which closed in August.

A new bus station is planned to open by December 2017.

Later phases of the project will include more commercial space and residential buildings.

Mr Osborne said: "Today we see a major vote of confidence in the Welsh economy with a new partnership between Legal & General and Rightacres.

"The £400m regeneration project which will be delivered through this partnership is fantastic news for working people across Wales and will help transform Cardiff's city centre creating 10,000 new jobs."

Phil Bale, Cardiff council leader, said the city already had an established a relationship with Legal and General as a major employer for the region and the investment was "an exciting new chapter which clearly demonstrates their confidence in the region".

Laura Mason from Legal and General Capital, said Central Square was the most exciting regeneration scheme to come forward in Wales.

Analysis by Brian Meechan, BBC Wales business correspondent

L&G is making the move because it clearly sees Cardiff as offering a good return potentially on its investment.

Cardiff has already been attracting companies and jobs from London, including Deloitte, with the promise of more in the pipeline.

It is no surprise that Leeds is another area it has invested in which is also attracting jobs, as firms try to move operations away from the expensive south east of England.

The electrification of the rail line between London and Cardiff will make journey times shorter which could make it even more attractive to move businesses here.

Having three universities in the capital is another reason given by companies for wanting to come to Cardiff.

This is a definite sign of confidence in the commercial property market here and in the capital's ability to create jobs in future, either by inward investment or growing firms.

But other areas where office space is badly needed such as Caerphilly may well be wondering whether they will benefit from future investment in property.