Retail & residential investment opportunity with value-add in Newcastle city centre

INVESTMENT SUMMARY

• Retail and residential investment opportunity located in Newcastle city centre

• Adjacent to The Helix; a major city centre regeneration project

• Newcastle is a two University city with a student population in excess of 50,000

• Generating a total rental income of £35,800 per annum

• Student rental income from 5 tenants at £110 pppw

  • Located in an area very popular with students • Freehold opportunity• Value-add opportunities through development

  
  

We are instructed to seek offers in excess of £405,000 (exclusive of VAT) reflecting a net initial yield of 8.48% assuming standard purchasers’ costs.

DESCRIPTION

The property comprises a mid terraced 4 Storey building. The main walls are of solid brick construction and the roof is pitched with a slate roof covering. The property provides a ground floor retail area and on the upper floors is a spacious 5 bedroom flat with reception room kitchen and two bathrooms. The building was extensively refurbished in 2014.

LOCATION

Newcastle upon Tyne, the commercial heart of North East England, enjoys a strategic location roughly 260 miles north of London, 100 miles south of Edinburgh, and the same distance north of Leeds. This prime position translates to excellent connections via the A1(M) motorway, linking the city to both London and Edinburgh. The A69 trunk road further enhances its connectivity, offering a westward route to Carlisle and Cumbria.

Adding to its impressive transportation network, Newcastle boasts the Metro, the only underground rail network outside of London in England. This extensive system features 60 stations across the North East, seamlessly connecting Newcastle City Centre to surrounding areas like Sunderland, South Shields, and even Newcastle Airport itself.

TENURE

The property is held freehold with title number: TY209814

TENANCY INFORMATION

The ground floor is let to a private individual trading as an international food store for a term of 10 years from 13th October 2022, therefore expiring on 12th October 2032 at the passing rent of £7,200 per annum.

There are three yearly tenant only break options subject to 6 months notice and three yearly rent reviews. The upper floors are let to 5 students on an AST at £110 per person per week; calculating to an annual rent of £28,600 per annum. The total gross rent is therefore £35,800 per annum.

SITUATION

Located opposite the Newcastle Helix Energy Centre, the property benefits from a large rear yard with potential for value-add development. This space could accommodate commercial expansion or additional residential units, either as a standalone project or an extension to the existing building, subject to planning permissions.