Newcastle – Freehold High Yielding Retail Investment with Significant Redevelopment Potential

Income

£6,560,000 pa

Description

• The university city of Newcastle is the economic and cultural centre for the north east of England.
• Newcastle has a primary catchment area of some 859,000 people and ranks Newcastle 8th out of the 70 PROMIS retail centres throughout the UK.
• Highly prominent City Centre site within close proximity to the prime retailing pitch.
• Effective island site with dual access on to Nun Street (fronting Grainger Market) and Newgate Street.
• Attractive period and part Grade II listed frontage (Nun Street) of high architectural merit.
• Immediately opposite Grainger Market, a  226 bed 4-star hotel and close to The Gate Shopping Centre and prime retail pitch.
• Former department store arranged over basement, ground and four upper floors totalling 50,268 sq ft.
• Secure income let to Wilko Stores Limited for a further 6.2 years at £525,000 per annum, equating to £10.68 psf.
• Good trading store, ranked within the top 25% of the Wilko portfolio, based on turnover.
• Medium-term potential to comprehensively re-develop the site to provide alternative uses, subject to vacant possession and planning.
• Newcastle City Centre continues to benefit from strong residential and student accommodation demand.
• Offers are sought in excess of £6,560,000 subject to contract and exclusive of VAT. A purchase price at this level reflects a Net Initial Yield of 7.50%, subject to standard purchaser’s costs and a low capital rate of £130 psf.