Principality funds £28m Cardiff co‑living project
Principality Building Society backs Urban Centric’s Traders Yard with nearly £28 million, adding 182 co‑living homes to Cardiff’s city centre regeneration zone.
Principality Building Society has committed just under £28 million to fund Traders Yard, a 182‑unit co‑living scheme slated for the heart of Cardiff’s city centre.
The funding agreement, signed with local developer Urban Centric, marks the society’s largest commercial‑property investment to date and underlines its strategy to back high‑quality rental homes in Welsh communities.
Traders Yard will sit alongside the River Taff, within the city’s major regeneration corridor that includes Central Quay, the Callaghan Square finance quarter and Cardiff Central railway station.
Full planning permission has already been granted, allowing the project to move swiftly from design to construction.
Urban Centric, which boasts more than two decades of experience delivering mixed‑use schemes, will split the development into two blocks – a five‑storey tower of 40 apartments due for completion in 2027 and a 13‑storey tower of 142 units targeted for 2028.
Both blocks will feature balconies, roof gardens and cycle storage, while a communal plaza will provide ground‑level retail space.
Future residents will share a suite of amenities, including a gym, dining room, co‑working areas, lounges, games rooms, a cinema and wellness zones.
Chad Griffiths, Senior Portfolio Manager at Principality Building Society, said: “We’re delighted to be supporting local property developers Urban Centric with a development of much needed rental homes in the centre of our capital city.” We’ve known Urban Centric for a long time and been impressed with their delivery of a number of similar sized projects.
Supporting larger development funding projects, like Traders Yard, aligns with our growth strategy for Principality Commercial.”
Andrew Woods, Managing Director at Urban Centric, added: “Our relationship with Principality spans nearly two decades, and we’re delighted to be working with them again on Traders Yard.” Not only do Principality provide an excellent service, we thoroughly enjoy working with the whole team.
Their understanding of our business, and of the Cardiff market, has been invaluable in getting this project off the ground. Traders Yard is our most ambitious co‑living scheme to date, and having a trusted local lender alongside us gives us real confidence as we deliver high‑quality rental homes in the heart of the city.”
The co‑living model, which blends private living spaces with extensive shared facilities, aims to address a shortage of competitively priced rental accommodation in the capital.
Principality’s investment reflects its broader commitment to building homes within local communities, a pledge that has guided its commercial activities since the society’s inception.
Industry analysts note that the influx of capital into co‑living projects could reshape the rental market, offering alternatives to traditional apartments and potentially easing pressure on private landlords.
Cardiff’s regeneration agenda, driven by the city council and private partners, seeks to create a vibrant, mixed‑use environment that attracts both residents and businesses to the waterfront and surrounding districts.
Urban Centric’s track record includes several mixed‑use developments across Wales, and the firm expects Traders Yard to become a flagship example of modern, community‑focused living.
Construction is set to begin later this year, with the first block expected to welcome tenants in early 2027.
When completed, the development will add 182 new homes to the city’s rental stock, providing a range of one‑ and two‑bedroom units designed for young professionals, students and downsizers seeking a central location.
Principality Building Society’s funding deal underscores the growing confidence of Welsh financial institutions in the property sector’s capacity to deliver sustainable, community‑benefiting projects.