A historic shopping and leisure arcade in Newcastle has been put up for sale by its owners with a multimillion-pound price tag.
The Grade II listed Central Exchange in the shadow of Grey’s Monument is on the market for at least £11.75m – and it is being marketed by the same property experts who sold neighbouring Monument Mall to real estate entrepreneurs the Reuben Brothers. Clifton Partnership LLP say the property represents the chance for investors to acquire a historic trophy asset in the heart of Newcastle, at a time when new developments are expected to increase footfall in the area.
Central Exchange includes 41,800sqft of accommodation set over the basement, ground and first floors of the grand building, which was originally built in 1837 but had to be rebuilt in the early 20th century after a fire in 1906. The second, third and fourth floors have been previously sold off on long leaseholds, but this sale would see new owners take on the freehold of the rest of the building, including the ornate Edwardian shopping arcade.
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Tenants include JG Windows, Cafe Andaluz, Grey St Opticians, Naked Deli, Cote Brasserie and Greggs, which collectively bring in more than £1.06m in operating income each year.
Meanwhile, two empty shops - where Cath Kidston and Gloria Jean’s Coffees once traded – could soon reopen with new businesses, as both units are currently under offer. Gloria Jean’s Coffees opened in the former Pret a Manger site on Grainger Street in February, but was taken back by the landlords at the start of June.
Ben Simpson at Clifton, added: “After the sale of Monument Mall last year, Clifton are delighted to be selling another unique freehold investment surrounding Grey’s Monument in the heart of the city centre. Our clients have held this asset for a long time and this now offers a fantastic opportunity for inward investment. The income has been rebased in line with recent market conditions, allowing for strong rental growth potential with high demand from various food and beverage operators.”
Clifton said the Central Exchange is in high demand from potential tenants, thanks to the strong popularity of its hospitality businesses, which include Spanish tapas restaurant Cafe Andaluz which opened last October, Cote Brasserie, the recently opened Bluebird, Naked Deli, Flore and Greggs.
The firm said there is also potential to repurpose first floor offices for alternative uses.
The company’s marketing materials say: “The asset provides well proportioned trading units with frontages onto Grainger Street, Grey Street and Market Street. Central Exchange creates a thoroughfare from all three streets trisecting the asset. The property comprises a block of 22 well configured shops and restaurants arranged over basement, ground and first floors. Eight of the units benefit from dual frontage internally into the arcade.
"The arcade has two units that only face internally, one of which is Waceland and the other being J.G Windows who have been in occupation for decades. The arrival of 9,000 staff into the new 463,000 sq ft regional centre will increase footfall past the subject property and enhance the vitality and viability of the nearby city centre retail core. The city’s thriving nightlife is estimated to be worth £340m per year and is a major contributor to Newcastle’s economy.
“The subject property comprises a prime island site in Newcastle city centre. Bordered by Grey Street, Grainger Street and Market Street, the property is perfectly placed between the 100% prime retail pitch at Northumberland Street and infamous Newcastle leisure pitch. Grey’s Monument, one of Newcastle’s best-known landmarks, sits across from the property on its northern corner.”
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