Retail property (high street) for sale

INVESTMENT SUMMARY

Newcastle upon Tyne, England has a population of 300,200 people and a wider metropolitan population of approximately 880,000 (c2021)

The property is located on the corner of Newgate Street and Grainger Street in the heart of Newcastle amongst a well-established shopping and leisure district

In close proximity to Eldon Square, Newcastle’s premier shopping centre, which offers 1.6 million square feet of retail space.

Total passing rent of £82,500 per annum from two tenants

Dicksons is a well-established regional butcher with over 30 stores in the North East

Chilliflames is a national Afro Portuguese hot food takeaway and restaurant with more than 17 stores

We are instructed to seek offers in excess of £1,100,000 (exclusive of VAT) reflecting a NIY of 7.09% NIY assuming purchasers costs of 5.85%

LOCATION

Newcastle upon Tyne, the commercial capital of the northeast of England, is situated approximately 300 miles north of London, 100 miles south of Edinburgh, and 100 miles north of Leeds. The city has excellent transportation links, being situated on the main A 1 (M) motorway connecting London and Edinburgh. It also links with Carlisle and Cumbria to the west via the A69 trunk road.

As well as overground rail connections, Newcastle is the only city in England outside of London to benefit from an underground rail network, the Tyne and Wear Metro. The Metro has 60 stations across the North East connecting Newcastle City Centre to the wider conurbation including Sunderland, South Shields, and Newcastle Airport.

Newcastle is home to two leading universities with over 50,000 students; Newcastle University and Northumbria University. Newcastle University is a member of the Russell Group, a prestigious group of 24 UK universities. Both universities have large international student populations and have recently expanded their city-centre campuses.

The population of Newcastle upon Tyne, England is approximately 300,200 people, according to the 2021 UK Census. The wider population of the Tyneside metropolitan area, which includes Newcastle and the surrounding boroughs of Gateshead, North Tyneside, and South Tyneside, is approximately 880,000.

SITUATION

The property is located on the corner of Newgate Street and Grainger Street in the heart of Newcastle upon Tyne, one of the largest cities in the North East of England. It is a prime location, close to all of the city’s amenities, including shops, restaurants, bars, and clubs. The property is also within walking distance of both Newcastle University and Northumbria University, as well as St. James’ Park, home to Newcastle United Football Club.

Across the street from the property is there developed Newgate Centre, which includes student accommodation, a four-star hotel, and retail, leisure, and restaurant space. To the west of the property is The Gate Leisure complex, and to the east is the Bigg Market. Also in close proximity is the Debenhams entrance to Eldon Square, Newcastle’s premier shopping centre, which offers 1.6 million square feet of retail space.

DESCRIPTION

The property comprises ground floor and basement accommodation, sub-divided to provide two retail units; occupied by Dicksons & Chilliflames.

TENURE

The property is held freehold with title number ND7535. The upper floor flats have been sold off on a long-leasehold interest.

TENANCY INFORMATION

4 Newgate Street is let to The Play Cafe Limited, trading as Chilliflames on a lease dated 15th September 2022. The property is held on effective FRI terms via a service charge at the current rent of £40,000 per annum, for a term of years expiring 14th September 2032 with rent review on 15th September 2027. There is a tenant only break on 15th September 2027, subject to 6 months notice. Chilliflames have 17 stores across the UK serving Afro Portuguese food.

77 Grainger Street is let to Ml Dickson Limited on a lease dated 28th April 2016. The property is held on effective FRI terms via a service charge at a rent of £42,500 per annum for a term of years expiring 28th April 2026. Dicksons is a regional butchers based in the North East of England. The company was founded in 1953 has grown to more than 30 shops.

VAT

The property is elected to tax and VAT and it is anticipated that the sale will be treated as a TOGC.

EPC

4 Newgaste Street- D

77 Grainger Street- D

PROPOSAL

We are instructed to seek offers in excess of £1,100,000 (exclusive of VAT) reflecting a net initial yield of 7.09% assuming purchaser’s costs of 5.85%.