Welsh Government property deals net nearly £7m profit since 2007

December 11, 2016 6:43 am Published by

Welsh Government property deals net nearly £7m profit since 2007

1 Capital QuarterImage copyright
Welsh Government

Image caption

Ministers bought the offices at 1 Capital Quarter in February 2014 before selling it for £20m earlier this year

Almost £7m profit has been made by the Welsh Government from properties bought and sold since 2007, new figures show.

Details obtained via a Freedom of Information request showed it made more than £5.7m in profit in just two years on Number 1 Capital Quarter, Cardiff, which was sold in January.

While a total of £2.4m was lost on 12 properties, six property sales raised £9.3m in profit.

The Welsh Government said it reinvested profit into regional economies.

Of those properties on which money was lost, 10 had been bought for road schemes.

The Welsh Government said in such cases, properties are usually held until they they are deemed as not being needed.

Top profits

Welsh Government properties since 2007

£5.77m

No1 Capital Quarter, Cardiff

  • £2.35m Former Acer Building, Wentloog, Cardiff

  • £500k Land next to the LNG Terminal, Milford Haven

  • £400k Former Sogefi site, Llantrisant

  • £180k Land off Traston Road, Newport

At this point they are revalued, with the difference between that value and the sale price representing the profit or loss.

The Welsh Government said that while these properties can be bought on the open market – disregarding the affect of the road proposals – it is accepted their resale value is reduced by a minimum of 15%.

The two remaining properties which were sold at a loss – totalling £979,000 – were part of a planned shopping centre in Pontypridd which never came to fruition.

A Welsh Government spokeswoman added: “We buy and sell property and land as part of our wider work to support and grow the Welsh economy.

“Any subsequent profit allows us to reinvest in our work to support businesses and regional economies across Wales.”

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This post was written by FSB News