PRIVATE CLIENT

72 -84 Grainger Street , NE1 5JQ

CITY CENTRE RETAIL PARADE INVESTMENT IN NEWCASTLE 72 -84 GRAINGER STREET, NEWCASTLE UPON TYNE, NE1 5JQ CITY CENTRE RETAIL PARADE INVESTMENT IN NEWCASTLE

Investment Summary • Fully let City Centre retail parade located in a ‘top 6’ retailing city • Current rent passing of £269,000 p.a. • Very attractive Grade II* Listed Georgian building situated on the main • Located in an established retailing destination in the City Centre which is thoroughfare between Newcastle Central Station and Elden Square experiencing considerable investment • The property comprises five retail units and a bar totalling approximately 9,964 sq ft • The property is held on a long leasehold basis for a term of 999 years from January • Tenants include Regis UK Limited and Vaulkhard Leisure Limited which trades 2005 at a peppercorn rent. as the popular and established ‘Mushroom Bar’ • Offers sought in excess of £3,000,000 (Three Million Pounds) subject to contract • Weighted average unexpired lease term of 7.13 years to expiry and 5.49 years and exclusive of VAT. A purchase at this level would reflect a net initial yield of 8.42% to break assuming usual purchaser’s costs of 6.45%

For identification purposes only. M

i

l t B o 1 n 6

B C 0 1 l 0 3 o 1 s S e t 8 o d d ce d a ra

T er ar o

e t t R n e S

a o e M t i t r ilto r t r

s n d Pla e

o S d c e e

a ( ) r

t 167 M a

l t c o e i

t

G

R

s

V

e

d

n

h

r

e

C

e o t

f u e

y e Q r

d t M

n i lt S o n

a Gr

d

e l S t e CIVIC e i S

n

h

n

S

o

72 -84 GRAINGER STREET, NEWCASTLE UPON TYNE, NE1 5JQ CENTRE CITY CENTRE RETAIL PARADE INVESTMENT IN NEWCASTLE

r

y

B t

S N a p ia S cy t r e P l ary’s P 7 St M 0 CITY CAMPUS 3

1 F

B a

l c

aymarket o M PEDESTRIAN n

t a

FOOTBRIDGE r

e

e S

r t t r

S e

e

n t e Newcastle City Hall d

m

a

C

R T Newcastle U 09 Dur B13 an e t ac MB R r d r e t T S

n SCHOOL OF so e

R PRINCESS p c Located on the north bank of the River Tyne, the City of Newcastle- n ELDON L i m

S e

DESIGN r

t

a SQUARE l J S

o

r SQUARE C h upon-Tyne is the regional and economical capital of the North-East ST JAMES a n n

T D o c R o l PARK b a t W F of England. The City benefits from some 280,000 residents and ge S s rid o B n e St T ew 193 New Bridg N S t forms part of the wider Tyneside conurbation. Newcastle is the North Manors M te East’s primary retailing, leisure and office destination and is located ga Monument M ow

ll 0 a N t S 0

G t A B1311 e e 6

N k r w e r

lson Ma g 1 a

approximately 280 miles (451 km) north of London, 100 miles (160 km) g y S B t l

e t 167(M)

e P S t

t i l g S S CITY north of Leeds and 109 miles (175 km) south of . r t i t n r m n S H e o to o ward St

e u s S B t G CENTRE t b i r t e t G y S The City benefits from excellent transport links being located in S e rn n S Manors u bo o t el t N M y u a n Whitley Bay l St T Newcastle close proximity to the A1 and A19, providing access to both the C

t R International S N r e G A1 ia w St Airport r G e north and south of the UK and the A69 connecting the city to Carlisle a I rn Ouston A696 t u A68 e G lbo A19 w F S R r e Airfield Tynemouth o t e G M L B y 186 13 S Pi Gosforth and Cumbria to the west. Rail services are provided via the East 0 t lgr d t 7 im S R A1058 S G t ity South r C n eat to M 86 A69 Coast Mainline from Newcastle Central with quickest journey times y ark t 1 Shields la e S TL C t y sle A69 Newburn o

M UP T Jarrow to Sunderland, Edinburgh and London Kings Cross of 19 minutes, A1 W 6 est 8 D gat 1 e A1300 e Rd a hurch Y n 167(M) C a S A184 c’s rd A194 1 hour 27 minutes, and 2 hours 50 minutes respectively. Ni t S t 186 W t Gateshead estg d S S W a t o te R o N t d w A1018 S g i Gatehead Millennium Bridge Newcastle International Airport is located 6 miles north west of in c 0 ll h 0 n o S 6 C o id 1 A1 A1 (M) o B la e t s e A19 y id A1231 the City Centre on the outskirts of Newcastle. The airport handles W ’ s a l S y e t ua C st A694 A692 t g Q

le S a t 0

l t S vi e 0

Ne R n 6

approximately 4.8 million passengers annually with direct routes to d e 1 A68

86 e B SUNDERLAND 1 u

Q 1 6 80 UK, European and International destinations. ecastle 7

T ill y A693 dh n A1018 rth St n e Fo Sa B r id Chester-le-Street g e

1 6 7 A690 A167 A1 (M) A19 00 16 B A691

se lo C B1 nks 60 h Ba 0 Fort Durham NewcastleA68 Retail Market The City of Newcastle-upon-Tyne has a population of approximately 280,200 and an estimated shopping population of 616,000 ranking it th rd A179 6 out of the PROMIS centres. The town ranks 3 out of 200 centresHARTLEPOOL A688 in terms of the volume of comparison retailA167 spend available in the Bishop A19 catchment area. A1 (M) Auckland A689 A177 City Centre retail floor space in Newcastle is approximately 2.6A689 million sq ft of which approximately 1.456 million sq ft is located A6072 Billingham Redcar within The Intu Eldon Square ShoppingA68 Centre. The Intu Eldon Square is considered Newcastle’s prime retailing pitch, overtaking in recent

years the historicA688 prime pitch of Northumberland Street, between MIDDLESBROUGH MarksBarnard & Spencer and Fenwick, located to theA167 east of the shopping Castle A66 centre. In the newly refurbished a further 105,000 sq ft A171 A67 of upmarket retailers can be located. Darlington

A66 Durham A66 Tees Valley International Airport A1 (M) A172 Local Development A19 In close proximity to the subject property, bounded by Grainger A1 Street, Clayton Street and Falconer’s Court, is the ongoing £100m redevelopment of the Newgate Centre by McAleer & Rushe. The development will include a new 269-room ‘luxury business hotel’, 575 modern student flats and 2,000 sq m of commercial space for retail, leisure or professional services use. It is expected the development will have a considerable positive effect to help improve the local commercial retail rental market. Newcastle upon Tyne - Central

72 -84 GRAINGER STREET, NEWCASTLE UPON TYNE, NE1 5JQ

ELDON SQUARE NORTHUMBERLAND STREET

GRAINGER MARKET

Situation The property is located on the east side of the southern section of Grainger Street approximately 0.3 miles south of the City Centre. The building occupies a prominent end of terrace corner position at the street’s intersection with Bigg Market. Grainger Street consists of a mix national multiples and local traders providing the main thoroughfare between Newcastle’s Grey’s Monument to the north and Newcastle Central Station to the south. Bigg Market, in which the street intersects, is a former historic marketplace and a popular night time destination with a number of pubs, bars and restaurants. Newcastle’s retailing core which includes the prime pitches of Eldon Square and Northumberland Street is located approximately 5 minutes to the north by foot. Monument and Central Station Metro (Underground Rail) interchange is located approximately 5 minutes to the south and there are a number of bus stops along Grainger Street which offer regular bus services across the city. Nearby retailers to the subject property include TJ Hughes, Wilkinson’s, Maplin, Bonmarche, Debenhams, Tesco, McDonalds, , TM Lewin, Carluccio’s, Costa and .

NEWGATE CENTRE DEVELOPMENT* • 269 • 575 room • 2,000 modernsq m commercialluxury space VIET CAFE studenthotel flats

DESCRIPTION *For identification The property comprises a Grade II* Listed Georgian building purposes only. arranged over basement, ground and four upper floors. The ground floor comprises four retail units all benefiting from frontages onto Grainger Street. 72 Grainger Street also benefits from a return frontage onto Bigg Market. The bar is arranged over ground floor lobby and basement accommodation. The property’s upper floors are not included within the leasehold interest and offer residential accommodation.

NEWCASTLE CENTRAL STATION © Crown Copyright, ES 100004106. For identification purposes only.

Experian Goad Plan Created: 24/03/2017 50 metres Created By: Allsop

Copyright and confidentiality Experian, 2017. © Crown For more information on our products and services: copyright and database rights 2017. OS 100019885 www.experian.co.uk/goad | [email protected] | 0845 601 6011 72 -84 GRAINGER STREET, NEWCASTLE UPON TYNE, NE1 5JQ CITY CENTRE RETAIL PARADE INVESTMENT IN NEWCASTLE

Tenure The property is held by way of 999 year lease from 21st January 2005 at a peppercorn ground rent. Covenant Ann’s Supermarket (t/a Vietcafe) is a takeaway restaurant serving traditional Vietnamese breakfast and street food. The store commenced trading in early 2017 providing variety to Newcastle’s lunchtime market. Regis UK Ltd is a leading High Street hair salon chain trading from over 150 stores across the UK. In June 2016 Regis UK Ltd reported a turnover of £69,959,000, a pre-tax loss of £2,020,000 and a total net worth of £18,663,000. Harry Nguyen (t/a Queen Nails) is an established independent nail salon. City Gent Franchising Ltd is a male hair salon trading from four stores in Newcastle, Manchester and Leeds. Vaulkhard Leisure Ltd is a family business running 15 licensed premises in Newcastle, Morpeth and Sheffield. In March 2016 Vaulkhard Leisure Ltd reported a turnover of £8,915,293, a pre-tax profit of £1,481.162 and a total net worth of £2,602,277.

The Mushroom Bar

Accommodation and Tenancy Schedule

Accommodation Tenant Floor Floor Area (NIA) Lease Start Rent Review Lease Expiry Rent pa Rent ITZA Comments Sqft Sqm (Tenants Break) (ITZA) Unit 1 - 72 Grainger Street Ann’s Supermarket Ground Floor (Shop) 1,380 (809) 128 07/03/2017 07/03/2022 06/03/2027 £43,500 £53.77 Newly refurbished t/a Viet Cafe Basement Storage 1,227 114 (07/03/2022) Unit 2 - 76 Grainger Street Regis UK Ltd Ground Floor (Shop) 880 81.8 01/12/2003 30/11/2018 £48,000 £77.05 t/a Supercuts (623) Unit 3 - 78/80 Grainger Street Harry Nguyen Ground Floor (Shop) 1,173 109 24/03/2015 24/03/2020 23/03/2025 £45,000 £63.38 t/a Queen Nails (710) (24/03/2020) Unit 4 - 82 Grainger Street City Gent Franchising Ltd Ground Floor (Shop) 842 78 23/03/2011 23/03/2016 22/03/2021 £45,000 £83.49 (539) Unit 5 - 84 Grainger Street Vaulkhard Leisure Ltd Basement (Bar) 4,462 415 14/10/2002 14/10/2017 13/10/2027 £87,500 £19.61 (overall psf) Lease recently re-geared* t/a The Mushroom Bar

Total 9,964 925.8 £269,000

* The lease for Vaulkhard Leisure Ltd has recently been re-geared and remains under the same ownership since 2002. It was agreed within the lease that the tenant will receive 12 months rent free if they carry out refurbishment works to the bar. The tenant has 5 years from the re-gear to implement the refurbishment. VAT EPC DATAROOM We understand the property is elected for VAT EPCs are available For access to the Allsop Dataroom and we would expect the transaction to be upon request. please use the following link: treated as a transfer of going concern (TOGC). https://datarooms.allsop.co.uk/register/graingerstreet

Proposal Offers sought in excess of £3,000,000 (Three Million Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 8.42% assuming usual purchaser’s costs of 6.45%

For further information or to make arrangements for viewing please contact: Private Client Team

Liam Stray Alex Butler 020 7543 6769 020 7543 6722 [email protected] [email protected] www.allsop.co.uk

PRIVATE CLIENT

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 07.17