Following sales of Central Exchange (Nov-22) and Monument Mall (May-21), Clifton Agency are pleased to announce the freehold acquisition of 84-92 Grainger Street and 18-28 Bigg Market.
Acting on behalf of private clients, the purchase represented a third historic mixed-use investment Clifton have traded within the city centre in recent months.
The Grade II listed building is fully let to 5 tenants and anchored by a 94,424 sq ft TJ Hughes department store. Other tenants include Taco Bell, Filthy’s live music venue and Passing Clouds cocktail bar. The investment currently generates £811,719 per annum with 74% of the income to TJ Hughes on a lease expiring in 2027.
After competitive interest from a wide variety of potential investors, the 114,152 sq ft property was sold by Columbia Threadneedle for £4,950,000 (15.35% NIY).
Ben Simpson commented:
“This well known local asset offers our client a high yielding medium term income profile with future redevelopment opportunities off an extremely low £43 per sq ft capital value."
With deep floor plates and dual frontages to both Grainger Street and the Bigg Market, the building is well positioned to cater for a wide variety of future end uses. In the event TJ Hughes ever downsized, the site could lend itself towards residential, student, offices, hotel and leisure uses - subject to planning. It was great to work on the acquisition alongside former colleague John Lane of Tienda Property who is retained by the anchor tenant in TJ Hughes.
Over the last 18 months, Clifton Agency have advised on transactions totalling £54m in Newcastle city centre and remain very active throughout the North East. If the team here can help with any of your buy or sale side requirements, then please do get in touch.
Comments