Buccleuch Property has bought a prime commercial building in central Newcastle for £12.45 million.
The Duke of Buccleuch’s family company will make a net initial yield of 6.4% on Lloyds Court & 52-60 Grey Street, where tenants include Northern Electric, Sir John Fitzgerald bar and Las Iguanas restaurant.
The 47,000 sq ft of office and leisure accommodation was previously redeveloped behind the Grade II* listed façade.
Philip Eves, investment director at Buccleuch Property, said: “We are delighted to complete this purchase which demonstrates our confidence in Newcastle’s future prospects. Following our disposal of 55 Degrees North last year we were looking for a new investment in the city and this property provides the blend of characteristics we are seeking with a number of asset management opportunities as well as a strong core income stream in a prime location. We continue to seek similar investment opportunities.”
Buccleuch Property was advised by MHPI on the purchase. Cushman & Wakefield acted on behalf of the vendors.
Simon Harland, Director at MHPI Ltd, said: “Grey Street remains hugely popular with occupiers being at the heart of the city and at the centre of the thriving retail and leisure scene. Lloyds Court and 52-60 Grey Street offers a rare opportunity to acquire one of the most impressive mixed use blocks in the city.
“The positive office market dynamics and prime location has meant Grey Street continues to witness strong tenant demand. MHPI have worked closely with Buccleuch Property for many years and we are delighted to secure such a prime city centre investment opportunity.”
Peter Atkinson, partner a Cushman & Wakefield, said: “Following a successful asset management programme it was great to complete the sale of this landmark asset. It was a pleasure to deal with Buccleuch Property and I wish them the very best with the asset moving forward.”