19-21 Collingwood Street Newcastle-Upon-Tyne Ne1
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19-21 COLLINGWOOD STREET POLITANNEWCASTLE-UPON-TYNE NE1 1JE HIGH QUALITY OFFICE INVESTMENT FOR SALE PRIME LEISURE PITCH FULLY LET TO A STRONG COVENANT INVESTMENT SUMMARY • High quality office accommodation providing 1,115.13 sq m (12,003 sq ft) over six storeys with a modern ground floor retail façade and an attractive roof terrace • Situated in a prime leisure pitch offering future redevelopment opportunities to enhance value • Excellent transport provisions with Newcastle Central Station located within three minutes’ walk • Fully let to the strong covenant of Nigel Frank International Ltd on FR&I terms until 31 August 2021 • Considerable tenant investment in fitting-out the property to a very high standard • Total passing rent of £152,916 per annum equating to a low average of £12.67 per sq ft, or £9.79 per sq ft over the upper floors when applying a standard retail rent to the ground floor area • Offers sought of £1.85M reflecting a net initial yield of 7.78% after deduction of standard purchaser’s costs at 6.23% Newcastle Airport NORTH A696 SHIELDS A191 Port of Tyne WG A69 A1 A167 A1058 LLO ATE TYNE SOUTH GA NEWCASTLE TUNNEL SHIELDS UPON TYNE MANORS T ST RKE MA T A186 A19 S A167(M) A184 A1018 N O T S A694 A186 T E GATESHEAD Y RN A U L O A1 A194(M) C LB A692 T E S M PIL R GR A1290 D IM Port of E T ST V G S Sunderland N A186 A1231 L I D O B A A186 R O ’ G W SUNDERLAND S W G WASHINGTON EST N E GA LI 64 TE R L M D CO A J A693 A1018 T 63 T Y E S ID HOUGHTON ST N YS CHESTER-LE-STREET E E A ILL QU -LE-SPRING NEV B SEAHAM R A186 I A690 D NEWCASTLE G E A167 ST TH A1(M) A19 R FO A691 62 A690 PETERLEE DURHAM SCOTLAND LOCATION Glasgow Newcastle-upon-Tyne is located approximately 286 miles north of London supporting 60 stations connecting Newcastle to Gateshead, Edinburgh and 105 miles south of Edinburgh and is the commercial and administrative Sunderland and Tyneside. The city benefits from good air travel Newcastle capital of the North East, located in the county of Tyne and Wear. The city is connections with Newcastle International Airport situated Sunderland Carlisle the 7th largest in the UK with a population of approximately 273,000 people, approximately 7 miles west of the city centre providing regular flights to extending to in excess of 1,000,000 people within the wider Tyneside key domestic, European and international destinations. York conurbation. Leeds Manchester Newcastle benefits from extensive road, rail and air travel provisions with Liverpool Nottingham Newcastle Central Station situated on the East Coast Mainline providing a Birmingham fastest journey time of 2 hours 40 minutes to London Kings Cross and 1 hour ENGLAND 30 minutes to Edinburgh Waverley. The Central Station also provides the WALES Cardi main interchange for the Nexus Tyne and Wear Metro network, Bristol London NEWCASTLE EcONOMY Newcastle has a significant presence of high profile office occupiers, representing international, national and regional firms including Barclays Bank, PwC, Sage Group, Virgin Money, Ernst & Young, Go-Ahead Group, Grainger plc, Sky UK and Brewin Dolphin. The city is home to approximately 169,000 employees, making it the largest employment centre in Tyne and Wear with the economy largely driven by the service sector, which accounts for approximately 84% of jobs. In addition, the city has a thriving retail market, benefiting from extensive city centre provisions with over 2.2M sq ft of retail space on offer. The prime retail pitches in Newcastle include Northumberland Street, the recently extended Eldon Square Shopping Centre and the newly refurbished Monument Mall. Combining this with Europe’s largest out of town shopping centre The Metro Centre enables Newcastle to be ranked 4th in the regional centres and 5th out of 100 PROMIS centres in both spending and number of multiple retailers. The city is home to two leading universities. The University of Newcastle is a member of the Russell Group – an association of research intensive UK universities. It attracts approximately 18,000 students from over 100 countries. Northumbria University is the largest in the North East, enrolled by over 33,000 students from over 125 countries. Both Universities boast modern city centre campuses and are renowned for their world-leading commitment to research and outstanding academic achievements. In recognition of the world class research being undertaken at its universities, as well as the new potential of its science industry base, Newcastle was designated as one of six UK Science Cities in 2005. A multi-million pound project has been announced that will build upon Newcastle’s existing areas of excellence in Ageing and Health, Sustainability, and Stem Cells and Regenerative Medicine, and will involve the development of a number of sites across the city, with the aim of creating in excess of 5,000 new jobs. SITUATION NEWCASTLE The subject property is located on UNIVERSITY Collingwood Street, an established commercial pitch within Newcastle City Centre. Within the immediate vicinity there is a critical mass of office accommodation TIME CENTRAL including Collingwood House to the north- east, St Nicholas Buildings to the south-east, ELDON SQUARE as well as Central Square, Central Square WELLBAR MONUMENT MALL CENTRAL South and the newly developed Stephenson Quarter a short walk to the south. The THE GATE immediate vicinity of Metropolitan House includes representation from a number of GREY STREET well-known office occupiers such as Rivers Capital Partners, Beecham Peacock Solicitors, The North East Chamber of Commerce (NECC), Finance Tree Ltd, GRAINGER American Express and The National Audit STREET Office. Collingwood Street not only provides quality COLLINGWOOD office accommodation, but is an established STREET prime leisure pitch in the city centre. The street, also known as ‘The Diamond Strip’ POLITAN has cemented itself as Newcastle’s top leisure destination, delivering a dynamic and energetic environment year round to CENTRAL STATION students, tourists and locals alike. The Diamond Strip hosts a large number of national and regional bars and restaurants, CENTRAL SQUARE including bar occupiers such as Revolution, Perdu, Madame Koo, Flares, House of Smith, Tup Tup Palace and Soho Rooms. Restaurant occupiers include the newly opened Miller and Carter steakhouse, Longhorns steakhouse, the Chicken Coop, Portofinos and Marco Polo. Further STEPHENSON leisure provision is on Grey Street, QUARTER adjacent to the Collingwood Street, and the Quayside – a short walk south. REGENERATION A significant amount of development is taking place in the vicinity of Metropolitan House which has created a wealth of new employment opportunities and encouraged external investment into the city. The £20M redevelopment of Central Station has created a striking gateway into Newcastle, extended the retail offer and created a station that is more impressive and accessible to visitors. This scheme has triggered a series of new projects, as well as encouraging existing businesses in the surrounding area to invest in and upgrade their premises. Since the development of Central Station, Baron House, an eight-storey former office building located a short two minute walk west from the subject property has been re-developed into a Hampton by Hilton Hotel, providing 160 high quality suites as well as a gymnasium, business conferencing facilities and restaurant. The project has brought over 60 jobs to the area and has become the latest in a string of new city-centre hotel developments, following on from the openings of Tune Hotel, the Crowne Plaza, Sleeperz and Motel One. In addition to this and immediately to the west of the subject property, Select Property Group have recently completed the construction of a new 259-ned student accommodation building at the former Westgate House and Norwich House site. Over half the units were sold off-plan before construction began, as investors respond to the Savills Student Housing report 2014 identifying Newcastle as one of the best investment opportunities in the UK. A further 209-bed student residential scheme has recently completed on Forth Street, approximately a four minute walk south of Metropolitan House. Further proposed regeneration nearby includes the £2.5M White Hart Yard development, located 160 metres north east of the subject property. The project, inspired by areas such as London’s Shoreditch, aims to transform one of Newcastle’s most historic areas, opening up and connecting venues on Grey Street and the Cloth Market, and will encompass 30,000 sq ft of leisure space, to include a number of bars, event space for pop-up food, drinks and retail outlets, and cobbled walkways with venues connected by a bridge. A further £2.9M is being invested in regenerating The Bigg Market, a bustling Newcastle leisure hot spot located a short walk north of the subject property. Works will include new bar and restaurant venues and a 92-seat pavement café area, with further plans to include a new gym and hotel. Lastly, The Newgate Shopping Centre, located between Pilgrim Street and Grainger Street just 500 yards north of Metropolitan House is set for a multi-million pound redevelopment. Demolition of the old 1960’s shopping centre has begun to make way for a new 269-bed hotel, 575-bed student accommodation, as well as new shops and leisure provisions to include a car park and private outdoor space. DESCRIPTION ACCOMMODATION The subject property comprises a mid- The property has a net internal area of 1,115.13 sq m (12,003 sq ft) as detailed terraced period building arranged over in the table below: basement, ground and five upper floors.