Property investment team expands Newcastle portfolio with Grey Street acquisitions

Newcastle’s Grade II listed Lloyds Court & 52-60 Grey Street have been purchased by private property investment team Buccleuch Property.

The company has strengthened its commercial portfolio with the purchase of the buildings in the heart of the city centre which, combined, offer 47,000 sq ft of modern office and leisure space to tenants including Northern Electric, Sir John Fitzgerald and Las Iguanas.

The sale completed for £12.45m, producing an initial net yield of 6.4 per cent. Cushman & Wakefield acted on behalf of the vendors, while Buccleuch Property was advised by MHPI on the purchase.

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, added: “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 has worked closely with Buccleuch Property for many years and we are delighted to secure such a prime city centre investment opportunity.”

Peter Atkinson, partner at 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.”

With offices in Edinburgh and London, Buccleuch Property has a market exposure of circa £250m through a UK wide investment portfolio, a commercial development pipeline in excess of 2 million sq ft and a strategic land portfolio with over 10,000 consented housing units.