JR Smart Sells Lloyds Cardiff Hub at No. 1 John Street 2026

Key Points

• Developer JR Smart based in Cardiff has completed the sale of Lloyds Banking Group’s Cardiff headquarters located in 1 John Street for circa £36 million.
• The asset was marketed by Knight Frank for approximately £38 million, other sources mention an asking price of £38.4 million.
• 1 John Street is occupied on a 10-year lease by Lloyds Banking Group and offers a home to some 2,500 employees in South Wales.
• The property occupies 115,129 sq ft of Grade A office space spread over 10 floors and is part of Callaghan Square office development in central Cardiff.
• The development was completed earlier in 2026 and benefited from a £15 million loan from Cardiff Capital Region’s Strategic Premises Fund.
• Cardiff Capital Region commented that the development successfully managed to secure pre-letting from Lloyds and created over 3,000 jobs in the city centre.
• The acquisition was financed by Handelsbanken and Hugh James advised Handelsbanken, Robertsons Solicitors represented the vendor while JCP Solicitors acted for the buyer.
• Knight Frank partner in Cardiff Gareth Lloyd described the investment as “best-in-class” with regards to its strong covenant and blue-chip occupier.
• According to BE News, JR Smart sold the building to a private investor for an undisclosed sum.

Cardiff (Wales Times) October 21, 2026 — JR Smart has sold Lloyds Banking Group’s uk/local/cardiff/">Cardiff headquarters at No. 1 John Street to a private investor for circa £36 million, one year after completing the city-centre office scheme. As reported by Luke Haynes of CoStar News, the transaction concerns the John Street property in Cardiff.

The sale marks a major exit for JR Smart from a development that was delivered with public-sector support and pre-let to one of the UK’s largest banking groups. The building forms part of the established Callaghan Square office development and is located in the heart of Cardiff city centre.

How Much Was No. 1 John Street Sold For?

CoStar News reported the price as circa £36 million. The figure is below the guide price reported when Knight Frank was appointed to market the investment: Insider Media said the property was marketed for around £38 million, while AOL reported an asking price of £38.4 million.

The reported sale price has not been publicly confirmed by JR Smart, the buyer, Lloyds Banking Group or Knight Frank in the available reporting. BE News described the consideration as undisclosed, although it confirmed the sale of No. 1 John Street to a private investor.

Why Is the Cardiff Office Deal Significant?

As reported by Insider Media, the sale of No. 1 John Street is being described as one of the most significant office deals outside London so far in 2026. The publication also described the building as the most recently developed office in the entire UK regional office market.

The transaction is notable because the asset is fully let to Lloyds Banking Group, providing a base for a team of about 2,500 people in South Wales. Insider Media reported that the building offers just over 115,000 sq ft of Grade A space arranged over 10 floors.

What Did Knight Frank Say About the Sale?

Gareth Lloyd, partner at Knight Frank Cardiff, said the sale demonstrated “the strength and attractiveness of Cardiff’s office market to investors”. As quoted by Insider Media, he added that the asset was “best-in-class from every perspective, with a strong covenant in a blue-chip occupier”.

Knight Frank acted for JR Smart in the sale. CoStar News identified Gareth Lloyd as a partner in Knight Frank’s Capital Markets team in its article contacts.

Who Bought Lloyds’ Cardiff Headquarters?

The buyer has been identified only as a private investor. Neither CoStar News nor Insider Media named the purchaser in the available reports.

Handelsbanken provided funding for the purchase, according to Insider Media. The buyer received legal advice from JCP Solicitors, while JR Smart was represented by Robertsons Solicitors and Handelsbanken by Hugh James.

What Is No. 1 John Street?

No. 1 John Street is a 10-storey Grade A office building at Callaghan Square in central Cardiff. Insider Media reported that it provides just over 115,000 sq ft of office accommodation and is let in its entirety to Lloyds Banking Group.

JR Smart’s own project page previously described the John Street development as 109,000 sq ft of Grade A offices, with floor plates of 13,000 sq ft, at No. 1 John Street, Callaghan Square, Cardiff. The differing figures reflect the information available from each source; the transaction reporting from Insider Media cites just over 115,000 sq ft.

How Was the Development Funded?

The development was supported by a £15 million loan from Cardiff Capital Region’s Strategic Premises Fund, according to both Insider Media and Cardiff Capital Region.

Cardiff Capital Region said the funding enabled JR Smart to deliver a 114,000 sq ft, 10-storey office building at Callaghan Square. It said the scheme secured Lloyds Banking Group as a pre-let tenant on a 10-year lease and brought more than 3,000 jobs into the city centre.

When Did Lloyds Move Into the Building?

Lloyds Banking Group unveiled its new Cardiff office in late September 2026, after taking the entirety of the 10-storey John Street building. As reported by AOL, the bank entered a 10-year lease for the property.

Earlier reporting by BE News said Lloyds had agreed in December 2024 to take the entire 110,000 sq ft John Street office block, with completion scheduled for September 2025. That report said Lloyds planned to relocate staff from Newport and St William House, close to John Street, into the new building in 2026.

What Happens After the Sale?

The reported transaction transfers JR Smart’s investment interest in the completed, income-producing office building to a private investor. Lloyds Banking Group remains the occupier under its 10-year lease, according to the reporting on the sale.

The sale does not appear, based on the available reports, to change Lloyds’ occupation of the Cardiff headquarters. The buyer’s identity, the final net proceeds to JR Smart and the precise terms of the funding arrangement have not been disclosed publicly in the available coverage.

Background of the Development

No. 1 John Street was developed by JR Smart as part of the Callaghan Square office area in central Cardiff. Cardiff Capital Region said its £15 million Strategic Premises Fund loan supported delivery of high-quality, sustainable employment space at John Street, in partnership with JR Smart and CBRE.

Cardiff Capital Region chief executive Kellie Beirne said the development was the type of investment the organisation was created to support. She said the partnership had unlocked a key city-centre site, brought together sustainable development and quality employment space, leveraged private-sector investment and secured thousands of jobs in a strategically important location.

Lloyds Banking Group had agreed a 10-year lease for the building before completion, according to BE News’ 2024 report. The bank was due to relocate staff from Newport and St William House to the new Cardiff base during 2026.

Prediction: What It Means for Cardiff Investors

For commercial property investors, the reported circa £36 million sale provides a recent pricing reference for a newly completed, fully let Grade A Cardiff office asset with a major banking tenant. The gap between the reported sale figure and the previously reported £38 million to £38.4 million marketing price may prompt investors to examine pricing, yields and financing costs for comparable regional office investments.

For Cardiff’s business and property community, the deal may support confidence in the city’s ability to attract institutional and private capital for prime, pre-let office schemes. Knight Frank’s Gareth Lloyd framed the sale as evidence of investor interest in Cardiff’s office market, while the building’s Lloyds lease and public-sector development funding remain central to its investment profile.

For Lloyds staff and local workers, the transaction is unlikely to have an immediate operational effect based on the available reporting, because the sale concerns the property investment rather than the bank’s lease or occupancy. The reported 10-year lease and the building’s role as a base for about 2,500 people indicate continued use as Lloyds’ South Wales hub.