Buccleuch Property has strengthened its commercial property portfolio with the purchase of Lloyds Court & 52-60 Grey Street, Newcastle upon Tyne for £12.45m, reflecting a net initial yield of circa 6.4%.
Lloyds Court & 52-60 Grey Street is situated in a prime location in the heart of the city centre. A combined 47,000 sq ft of office and leisure accommodation is let to a range of good quality tenants including Northern Electric, Sir John Fitzgerald and Las Iguanas.
The property had previously been comprehensively redeveloped behind the Grade II* listed façade and offers modern office and leisure accommodation. As well as a core of secure income the building also has a range of asset management opportunities to improve and enhance returns.
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.”
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.”
Buccleuch Property was advised by MHPI on the purchase. Cushman & Wakefield acted on behalf of the vendors.
Peter Atkinson, Partner, 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.”