Caldicot Business Park Faces Loss Despite New Lease and Regional Support
Caldicot's Castlegate Business Park, purchased for £7 million, is projected to incur a loss of £206,550 in 2026/27. The council is leveraging regional partnerships to enhance tenant mix and energy efficiency, suggesting a potential turnaround strategy amidst current losses.
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Caldicot's Castlegate Business Park, with a 217,000 square foot footprint, is expected to face a financial loss of £206,550 in the 2026/27 fiscal year. Despite this, the park maintains an occupancy rate of 85% and has secured a five-year lease from an existing tenant.
The council is collaborating with the Cardiff Capital Region to attract more tenants and support the compound semiconductor sector. As of April 2026, the park's return on investment is at -2.8%, down from -1.81% the previous year, significantly below initial targets.
In contrast, the Newport Leisure Park, acquired for £22.5 million, is generating a 2.4% return. The council's total annual income from commercial assets reached £3.871 million in 2025/26, indicating diversified investment performance.
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