Can £49m office block reinvigorate city centre?

Richard Youle, local democracy reporter

Creating prime office space has been a mantra for Swansea’s Labour administration and much is riding on its new city centre development on The Kingsway.

Polished concrete floors, sleek design and plenty of natural light create a distinct impression as you enter the six-storey building.

A few plants and chairs are dotted around – more so on the rooftop terrace – there’s a reception desk and a stepped area of wooden flooring. And that’s pretty much it. Less is more, as they say.

Stripped back it may be but that’s not to say 71/72 Kingsway isn’t impressive, and nor does it take away from the 360-degree views on the rooftop terrace, which has two enclosed work spaces.

The development has been a long time coming and, according to a public report in July, is costing around £49 million.

600 employees

The council said 80% of the space was let and that discussions for the remaining space were advanced. Financial company Futures First, travel operator TUI and workspace provider IWG are already located there or fitting out their space and it’s hoped that 600 company employees will work at the building when full.

That’s hundreds of people potentially popping out to buy a sandwich and coffee every day, or having a post-work drink from time to time, buying a record, a book or pair of shoes, although some of these workers will have relocated from offices elsewhere in the city.

Speaking at a council meeting last week, council leader Rob Stewart said 71/72 Kingsway and other regeneration schemes in Swansea were pushing up commercial rental values.

Viability

“They are much closer to the level of viability we would want to get for the city centre,” he said. This has historically been a challenge for owners of commercial buildings in Swansea, he said, because they couldn’t recoup their outlay, meaning some of them remained empty or languishing in need of an upgrade.

Cllr Stewart told the Local Democracy Reporting Service that 71/72 Kingsway was about more than bricks and mortar. “By providing the kind of modern, high-quality office space that employers need, we’re helping companies grow, innovate and stay in Swansea rather than relocating elsewhere,” he said. “This will help protect and create local jobs.”

The office block replaced the former Oceana nightclub building and a new access has been punched through to Oxford Street. A courtyard area is also being created to one side, across from a 12-storey development comprising flats and large south-facing greenhouse, office and retail space. Construction is well-advanced.

Like any new building 71/72 Kingsway generates different opinions. Shopper Janet Dickerson, of Swansea, said: “I think it’s very impressive. It’s very nice.”

Retail worker Ruby Jackson also gave it the thumbs-up. “It looks very modern and I think it’s a nice addition to the Swansea area. At least it’s not another vape or chicken shop.”

Another passerby though was less impressed. “From the front it looks good but I think (from the Oxford Street side) it’s ugly,” he said.

71/72 Kingsway has a basement geared towards events and a ground-floor space where a cafe and potentially other small retail units could trade but primarily it’s a modern office building targeting tech and professional services sectors.

Futures First staff are bedding in and Ryan Orton, its senior vice-president, said the company was excited to be part of it. “Developments like this demonstrate Swansea’s growing reputation as a hub for forward-thinking businesses, and we’re excited to grow alongside this dynamic city while contributing to its economic growth,” he said.

Victoria Hill, of IWG, said she and her colleague Andrea Bovingdon were looking forward to checking out cafes and shops in the centre of the city. “One of its greatest assets is Swansea Market, where you can grab everything from artisan coffee and fresh produce to handmade gifts – and all while supporting local businesses,” she said.

TUI employee Lisa Morgan cited other plus points. She said: “The new office will be fresher with more open space, which will make us feel a lot better.” She added: “I use public transport and to get there by bus is very easy as there’s a bus stop right outside.”

The council is also financing other city centre projects and has borrowed a lot of money to fund them, although it did so when interest rates were low. It is also receiving some central Government funding for 71/72 The Kingsway as it’s part of a wider city deal project for the Swansea Bay city region. Opposition councillors are keeping a close eye on borrowing costs, how they are paid back, and any budget overruns.

Princess quarter

Elsewhere in the city, the Princess Quarter office and commercial development has a firm of solicitors due to move in next month while two retailers are in the process of being secured for ground-floor units.

A company called Kartay Holdings led the development, on the corner of Princess Way and St Mary Street, and has several co-working spaces available. Companies have also held business and social events on the penthouse floor.

Kartay Holdings is also renovating 254-260 Oxford Street, and managing director Ian Morgan said a lease has been agreed for one of the six units and that there was strong interest in four of the others. There’s an existing tenant in the remaining unit. Mr Morgan said he believed “Swansea’s resurgence is well and truly steaming ahead”.

It’s been just over a year since another building – the grade two-listed Albert Hall – reopened as food and drink and entertainment venue, office space and visitor accommodation after a transformation costing nearly £9 million.

Its location on the corner of De-La-Beche Street and Craddock Street puts it on the fringe of the city centre but certain elements have worked particularly well from the outset, said Simon Baston, director of LoftCo Ltd – the company behind the project. These include the visitor accommodation, the gym, and groundfloor foodhall and cafe.

Mr Baston said around 70% of the Albert Hall’s 33 offices were let. “It’s been slow but steady – it was always going to be that way,” he said. “We’ve got to redefine the area. We are getting there.”

He said private events and things like film screenings and children’s clubs were popular. “In the first year we’ve learned a lot about what people in Swansea want,” he said.

Empty shops remain an issue for Swansea like any other city and town centre. Back at 71/72 Kingsway, having bums on seats and a steady stream of workers contributing to the city centre economy will feel like the payout council chiefs have staked so much on.