Avison Young acting on behalf of Sisu Advisors Ltd has acquired a city centre investment property comprising a retail parade at 68–82 Grainger Street, Newcastle upon Tyne.
The property comprises 4 ground floor retail units and a basement level bar within an attractive Georgian Grade II listed building with frontage to Grainger Street and a return frontage to Bigg Market. Grainger Street is the main thoroughfare between Newcastle Central Station and the Eldon Shopping Centre.
The property which is held by way of a 999-year lease from January 2005 totals approximately 10,706sq. ft. Tenants include Grainger News Ltd and Vaulkhard Leisure trading as the popular and established Mushroom Bar.
The vendor was Retail Plus General Partners Ltd. The current passing rental is £160,000 per annum and the purchase price of £1.6 million, reflects an initial yield of 9.4%.
Simon Beanland, Principal at Avison Young, comments.” We are pleased to have secured this prominent retail parade and established Night Club in Newcastle city centre. There is already an exciting occupier signed for the corner unit with good interest in the remaining retail space. We think that when occupied these units will transform this section of the city centre, offering great performance for our client “
Vesa Poikonen, Founding Partner at Sisu Advisors Ltd, said: “Sisu Advisors is dedicated to always finding the best deals and creating value to our investors. We are very glad to have successfully purchased this attractive asset offering a high return with a long lease profile and further upside from active asset management.”
MHPI Ltd and Allsop acted on behalf of the vendor.