Delta Capital Acquires Jesmond Investment with Long-Term Residential Potential

Delta Capital Property Investment has completed the off-market acquisition of 142-146 Manor House Road, Jesmond, Newcastle upon Tyne, NE2 2NA, on behalf of a private client.

Jesmond is one of Newcastle’s most sought-after neighbourhoods. There is constant demand from owner-occupiers, professionals and renters, and well-located commercial space on its local parades is in short supply. Manor House Road is an established parade serving the surrounding residential streets, with a strong mix of independent businesses.

The property has two ground floor shop units with basement storage, plus almost 2,000 sq ft of upper floor space over the first floor and attic. The upper floors are let to a well-established dance school. At ground floor, one unit is let to a long-standing barbershop. The larger unit, about 880 sq ft, was occupied by a café that was due to vacate at the time of purchase.

We were confident the café unit would re-let quickly given how scarce good retail space is in Jesmond, and that proved to be the case. Shortly after completion it was let to an estate agency, which strengthens the income and shows the depth of occupier demand on the parade.

The longer-term value is in the upper floors. The first floor and attic make up a substantial, self-contained space. If the dance school ever chose to vacate, it would provide a clear opportunity to convert to residential use, subject to planning, in a location where residential values and rental demand are among the strongest in the city.

Daniel Capobasso MRICS, Managing Director of Delta Capital, said:

“We bought Manor House Road as a long-term development play. We knew the café was moving out and were confident the unit would re-let quickly, and it has, to an estate agency. Above that, the dance school occupies a large first floor and attic that would lend itself well to residential conversion if the tenant decides to move on. It gives our client income today and real optionality in the future, in one of Newcastle’s strongest locations. Securing it off-market meant we could move quickly and on our terms.”

The acquisition is another example of our work sourcing off-market opportunities across Newcastle and the North East, with a focus on assets that provide income alongside long-term value-add potential.

If you’re looking for investment or development opportunities in the region, or would like to discuss acquiring or disposing of commercial property, please get in touch.

Daniel Capobasso MRICS | Managing Director, Delta Capital Property Investment | Mob: 07968 618 948 | Email: dc@deltacap.co.uk | Daniel Capobasso is a RICS-qualified commercial property investment advisor and Managing Director of Delta Capital Property Investment, specialising in investment transactions and asset management across the North East of England.