A Tyneside real estate firm has bought Gosforth Shopping Centre in a £9.3m deal – and has plans to create new community initiatives at the complex.
Monument Real Estate, which is based in Newcastle, acquired the popular centre in an off-market deal to bring it back into local hands for the first time in eight years. The firm, which has the backing of a consortium of local private investors, says it now wants work with the community on number of ideas to develop its brand.
The multimillion-pound deal followed a direct approach by Monument to Custodian REIT, which had become landlord of the centre in 2021 when it acquired the whole of Drum REIT. It was previously part of an investment portfolio belonging to entrepreneur Graham Wylie, owner of Close House Golf Course and founder of Sage Plc, who sold it in 2014.
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The popular shopping centre, which extends to 74,000 sqft with a car park on the second floor, is based on Gosforth’s busy High Street and all of its 18 retail units are currently occupied, anchored by supermarket Sainsbury’s taking up 33,000 sqft. Other tenants include Lloyds Bank, Boots and WHSmith.
Tom Wooldridge, executive director and founder of Monument Real Estate, said: “As the focal point of Gosforth High Street, within one of the most sought-after residential locations in the region, we saw an opportunity to secure the centre and improve its overall appeal given the very strong credentials.
“Being local asset managers, supported by local co-investors, we are well placed to capitalise on the strength of the demographics. We want to develop the brand and appeal of Gosforth Shopping Centre by bringing forward several new initiatives and working with the community to give the centre its own personality and establish points of difference with comparable centres.”
Naylors Gavin Black has been appointed as property manager and Monument will be retained as asset manager for the shopping centre. Nicola Tiffen and Ben Jackson of the commercial property and corporate teams respectively at Newcastle law firm Hay & Kilner acted on behalf of the purchaser.
Mr Jackson, corporate associate at Hay & Kilner, said: “Gosforth Shopping Centre is a landmark location in the North East retail sector and it’s great for us to be able to help bring it back into experienced local hands. The acquisition expresses great confidence in the future prospects of this prime retail space, as well as in the wider local area, and we look forward to seeing the exciting plans that Monument Real Estate has for its development being put into action.”
In 2021, Monument led the acquisition of Cathedral Square, a mixed-use building in the centre of Newcastle, with the backing of private equity and local investors. Earlier this year, the firm secured consent to create 35 residential flats in the vacant offices at 2 Cathedral Square and is currently working to secure planning consent to alter the design of the current building.
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