After buying Monument Mall last year, Motcomb Estates lands another deal in Newcastle.

The Reuben brothers have added another retail asset to their expanding regional portfolio, React News can reveal.

The brothers’ Motcomb Estates vehicle has purchased Central Exchange Buildings, located in Newcastle city centre, from Royal London Asset Management. The sale had a guide price of £11.75m, with the brothers’ deal understood to be just ahead of this.

Central Exchange, a Grade-II listed retail asset, was originally built in 1837. It includes a variety of 22 shops and restaurants over basement, ground and first floors, with occupiers including Cote Brasserie, Size?, Greggs, Scribbler and some independents.

When the sale was launched by Clifton Agency earlier this year, Central Exchange had a WAULT of more than seven years and 73% of its income came from national or regional multiple occupiers.

David and Simon Reuben are worth close to £21.5bn, according to the latest Sunday Times Rich List, and have built up a significant portfolio of real estate in Newcastle.

Last summer, they bought Monument Mall from Abrdn for around £37m. Their Taras Properties vehicle is moving forward with big mixed-use plans for a site on Pilgrim Street. Bank House is currently being developed into a 120,000 sq ft grade A office development, and plans were approved to convert an existing fire station on the site into a 60-bedroom hotel.

Clifton Agency advised Royal London Asset Management. Michael Elliott acted for Motcomb Estates.

Ben Simpson of Clifton said:

“Having grown up in Newcastle it was a real pleasure to advise Royal London on the disposal of this historic and extremely well known local landmark. To achieve such a positive result in a challenging market was a real testament to everyone involved in the sale. After strong competitive interest, the preferred bidder paid above the asking price to secure this unique freehold property.”