A retail parade in Newcastle’s historic Grainger Town area has been snapped up by London commercial real estate specialists in a £1.6m deal.
Sisu Advisors Ltd has swooped for the city centre investment property at 68–82 Grainger Street in a deal overseen by property consultancy Avison Young.
The property includes four ground floor retail units and a basement- level bar, set in the Georgian Grade II listed building with frontage to Grainger Street and Bigg Market.
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The property is held by way of a 999-year lease from January 2005 and has 10,706sqft of space.
Tenants include Grainger News Ltd and Vaulkhard Leisure, which runs its popular basement bar Mushroom Bar in the building, which has been sold to its new owners by Retail Plus General Partners Ltd.
The current passing rental is £160,000 per annum and the purchase price of £1.6m reflects an initial yield of 9.4%.
Simon Beanland, principal at Avison Young, said. “We are pleased to have secured this prominent retail parade and established nightclub 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 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.
The deal comes after another prime site in the area was bought by London flexible office firm Airivo.
It bought Grainger Chambers at 3-5 Hood Street, which has five floors of office space and a ground floor and basement bar and restaurant taken up by another Vaulkhard Leisure business, the Cuban bar and restaurants Castros.
