A North East real estate firm has brought a popular retail property back into local hands for the first time in eight years, following an off market deal.
Monument Real Estate, based in Newcastle, led the acquisition of Gosforth Shopping Centre in a £9.3m transaction, which had the backing of a consortium of local private investors. The deal came about following a direct approach by Monument to Custodian REIT which took over ownership of the centre last year, when it acquired the whole of Drum REIT.
It was previously part of an investment portfolio belonging to Sage Plc co-founder Graham Wylie, who sold it in 2014. The shopping centre, which extends to 74,000 sq ft with a car park on the second floor, is based on Gosforth High Street and all of the scheme’s 18 retail units are currently occupied, with supermarket Sainsbury’s taking up 33,000 sq ft. Other tenants include Card Factory, Costa, Savers, The Naked Deli, Boots and WHSmith.
Read more: Newcastle fashion tech firm Zoa Rental teams up with For The Creators
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. Property consultancy Gerald Eve and law firm Brodies represented Custodian.
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.
READ NEXT
Advisors Lazard given five weeks to find Britishvolt gigafactory buyer, reports claim
Recycling firm confirms plans for major North East plant
List released of the North East's fastest growing firms
North East deals of the week: key contracts, investments and acquisitions
