Grade II-listed building offered for sale.

Another historic high street retail pitch in the centre of Newcastle has gone up for sale, with Columbia Threadneedle putting the city’s TJ Hughes store on the market.

Prime Retail has been instructed to find a buyer for 84-92 Grainger Street and 18-28 Bigg Market, a grade II-listed property covering 114,000 sq ft.

The building is majority let to TJ Hughes, which trades from a store totalling nearly 95,000 sq ft, with two small units let to Taco Bell and a local bar operator.

The asset currently generates £810,796 a year in rent, with TJ Hughes’ lease expiring in 2027, and has been put on the market for £4.7m, representing a net initial yield of 16.2%.

In the long term, the building could offer redevelopment potential, with the site holding the possibility of hosting a hotel, offices or leisure. There could also be an opportunity to downsize and regear TJ Hughes to free up the building’s upper floors for redevelopment including a hotel or residential, subject to planning.

Columbia Threadneedle’s decision to sell comes amid increased investor interest in Newcastle’s retail market, which has proved to be resilient following the pandemic.

Last month, React News revealed Royal London had offered Central Exchange for sale, another retail trophy asset in the city centre.

The investor and fund manager has instructed property consultant Clifton to market the historic building in the city centre, which is being offered on a freehold basis for in excess of £11.75m.

The asset was originally built in 1837 and is also trisected by an ornate Edwardian shopping arcade built at the turn of the 20th century.

Other retail pitches to change hands in the centre of Newcastle in recent months include Buccleuch Estates’ purchase of an asset on Northumberland Street from NFU Mutual, as revealed by React News earlier this year.

Represented by Savills in an off-market deal, Buccleuch acquired 59-61 and 63-65 Northumberland Street, the city’s core pedestrianised shopping street, from the vendor, which was represented by Knight Frank.