City building changes hands in £14.5 million deal

A 19th century city building has changed hands in a £14.5 million deal.

Iroko Zen has bought the Exchange Buildings, on Newcastle Quayside, in an off-market agreement.

Built around 1860, the hub includes 9-15 Lombard Street, 9 Quayside, 16 Queen Street and 6-10 King Street.

Tenants include Premier Inn, pub operator Stonegate Group and Spirit Group Retail.

Bosses say the freehold sale represents a net initial yield of 7.42 per cent, with total rent standing at £1,152,478 per annum. 

French SCPI fund Iroko Zen was supported by global property consultancy Knight Frank – which has an office in Newcastle – on the deal.

Francesca Sidoli, from Knight Frank’s operational long income team, and Richard Stewart, of the firm’s European Team, represented Iroko Zen. 

Robert Irving Burns represented vendor United Property Services.

Dickon Wood, partner at Knight Frank in Newcastle, said: “This acquisition highlights continued foreign investor appetite for UK real estate in the regional cities. 

“It reflects a growing trend among investors to diversify away from saturated urban centres and seek higher returns.”

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