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CUTHBERTHOUSE NE1 2ET

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL CUTHBERTHOUSE NEWCASTLE UPON TYNE NE1 2ET

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL

Newcastle Central Station

Newcastle University

CITY CENTRE

QUAYSIDE Monument Street

Manors

Sage Tyne Trinity Gardens HOUSE Eldon Central Arena Square Library Development 55˚ North Residential Grey Street Development University

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL CUTHBERTHOUSE NEWCASTLE UPON TYNE NE1 2ET

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL

INVESTMENT CONSIDERATIONS PROPOSAL ■■ Prominent City Centre office with excellent ■■ Excellent development opportunities including Offers sought in excess of£3,750,000 (Three Million, asset management and development potential potential for hotel, refurbished offices, student Seven Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level ■■ Well located adjacent to , a short or traditional residential uses (STP) would reflect a very lowcapital value of £61.15 psf. walk from Newcastle Central Station ■■ Currently producing a passing rent of ■■ Freehold £133,967 per annum, reflecting £11.02 psf over the ofce accommodation DATAROOM Central ■■ The property comprises 61,326 sq ft of office Library accommodation with an onsite café and ■■ Potential to gain vacant possession in For access to the Allsop dataroom, please use the following link: under-croft parking for 53 cars December 2018 https://datarooms.allsop.co.uk/register/cuthberthouse

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL CUTHBERTHOUSE NEWCASTLE UPON TYNE NE1 2ET

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL

DEMOGRAPHICS With a total population of approximately 280,000 people, the City is home to approximately 169,000 employees, making it the largest employment centre in . According to PROMIS, 23.9% of all employees are employed in professional office based roles. Newcastle upon Tyne is a thriving student city, home to both the University of Newcastle and . The universities attract a combined total of approximately 51,000 students each year from over 100 countries. As one of the prime tourism destinations in the UK, it is estimated that approximately 17 million people visit Newcastle upon Tyne each year, spending around £1.4 billion. Over 18,000 people are employed in the tourism sector in Newcastle and Gateshead.

Whitley Bay Newcastle A1056 A192 International A19 Airport East A193 North Brunton A191 A189 Shields A696 South Gosforth A1058 LOCATION A188 A187 A186 Newcastle upon Tyne is the regional of the North East and the A69 principle focus of economic activity within the region. Located 105 miles A6085 A167 NEWCASTLE (168 km) south of and 270 miles (434 km) north of , A191 Newcastle upon Tyne is the largest employment centre in Tyne & Wear as UPON TYNE A183 Arthur's Hill A193 well as an important hub of tourism and culture in the UK. A186 A185 A1018 Newcastle upon Tyne benefits from excellent road and rail links. Newcastle CUTHBERT has excellent access via the A1 south to and north to Edinburgh. Road HOUSE communications via the A19 to the south have been significantly improved A695 A1300 by the recent duelling of the Tyne which was completed in 2012 and South has involved the introduction of a second tunnel. A194 Gateshead A184 Newcastle Central Station is situated at a key point on the UK rail network A1 Dunston A19 with direct access to many major cities. The East Coast Mainline has a travel time to London of approximately 2 hours 50 minutes and less than 1 hour 30 minutes to Edinburgh. The City also benefits from an extensive Metro system. A194(M) A167

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL A195

A1231

CUTHBERTHOUSE NEWCASTLE UPON TYNE NE1 2ET C L AD A D RO LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL R FOR P E DY O M AN R O S T N L T A

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D T EAST PILGRIM STREET OA R AND S L T BER HUM R T E Haymarket OR MASTERPLAN N E T

T N E O Situated a 2 minute walk to the north from Cuthbert E R R 10 mins T T

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C T ET A N RE P ST E N S ER Football Club A D K T Y become the primary gateway to the City Centre, D B S R O R

T K S B B EAST PILGRIM E A R R T E R R S with plans to enrich the retail and office offering A R E T C O O K E E R A N STREET T O E A whilst significantly improving the public realm. T D D S

T R MASTERPLAN Central to the regeneration is Bank House Square, E E NEW BRIDGE STREET T which fronts Swan House Roundabout, is set to K TE BLACK N GA ETT STREET A C W provide up to 450,000B sq ft of office, retail and LO Monument R R T St James AL Manors A E G E K intu Eldon N leisure space. E Y

W B Square T R T S T H E S K Shopping R A Importantly, part of the Masterplan is improvements A N M

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S T S A N S RO S T Y R T T R 5 mins CI E E E E E G E T walk R N T I S A WES CI TGAT N R TY R E RO O G O AD T ST AD STEPHENSON QUARTER Y Y A E L L C OS M Stephenson Quarter is a mixed use 10 acre T S D regeneration site Phase 1, which completed in WES O TGA O TE GW IN CUTHBERT 2016, included a 35,000 sq ft Grade A office and LL O T C S a 251 room Crowne Plaza Hotel. Phase 2 is set to W HOUSE O E Gateshead O ET S L RE T ST GA include 260,000 sq ft of office space along with R LLE T Millennium E EVI E T N RD residential, leisure and retail accommodation. A E Bridge SID D W Y OA A E R QU OR SH H WEST UT MORLAND RD LL SO HI Newcastle ND D SA Tyne R Central Station Sage SCIENCE CENTRAL A Bridge V Gateshead E L A 24 acre landmark development for science, U

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B education and business. The University of

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S D E E R S Newcastle’s brand new £58million134,000 sq M O D L A O C J O ft Urban Sciences Building, which opened in

T W S S T T EE September 2017, is a flagship development which O R F C T O S S R T Y H typifies the research and science focus of Science A B A W N L K Central. In addition, planning is underway to I S A STER PHENSON develop a Newcastle Laboratory, specifically geared

QUARTER D OA towards science based commercial activities. W R KE AS Planning permission has also been granted for

two Grade A office buildings, which will provide

N a total of 240,000 sq ft of new build office

Metro Radio Arena E W H I G accommodation. These buildings will be developed G R A E H D T S E in partnership with Legal and General Capital, W Gateshead H T D S E R U E H A Interchange E S G E who have already committed £65 million to the O T E H A R T B S D R T T scheme, creating approximately 2,000 jobs. R R ID O E G S E E E N T N LA R O RK O C A P A D E D A O C N R I ST W R SON E P CK K JA S T A S NT GE RE LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL Cuthbert House, NE1 2ET

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Cuthbert House occupies a highly prominent position fronting 27.1m 55 Degrees North 21.3m the Swan House Roundabout. The roundabout is a significant y wa ub S S fixture at the of Newcastle upon Tyne, linking the A167 l u e b n w central motorway to the Tyne Bridge and the City Centre. n a u y e T cad Cuthbert House is advantageously located between the Quayside, Ar yal FB FB Ro an attractive and lively business and leisure district to the south, Corner Tower and the prime retail and entertainment area surrounding Grey (site of) D A Multistorey Car Park Street and to the north. O R Y Access to the property is provided by Manor via the IT C A186. Pedestrian access is also available on Manor Chare as well as via a subway, which provide links to Mosely Street, Croft Stairs e Grey Street and Pilgrim Street. us Ho rt e t b c th u MA u d NO C a R C i LB HAR

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Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL CUTHBERTHOUSE NEWCASTLE UPON TYNE NE1 2ET

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL

DESCRIPTION Cuthbert House comprises office accommodation over lower ground, ground and four upper floors. The accommodation extends to approximately 5,697.35 sq m (61,326 sq ft) which includes 700 sq ft of café space to the ground floor. The property benefits from fexible foor plates which allow for potential subdivision as well being well suited for conversion to a variety of alternative uses. The property benefits from secure under-croft parking for 53 cars. The building is of concrete frame construction with concrete cladding to the external elevations, and metal framed aluminium double glazed windows beneath a mansard roof. The property benefits from the following specification; • Cycle storage • Two 13-person passenger lifts • Male, female and disabled access WC’s to each floor • Slab to slab height of 2.85m • Comfort cooling and perimeter radiator heating throughout • Suspended ceilings with recessed lighting

TYPICAL FLOORPLAN (FLOORPLANS AVAILABLE IN THE DATAROOM)

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL CUTHBERTHOUSE NEWCASTLE UPON TYNE NE1 2ET

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL

TENANCY & ACCOMMODATION

Demise Use Tenant Area Area Current Rent Current Rent Lease Start Next Review Lease Expiry Comments (sq ft) (sq m) (£ p.a.) (£ psf) Date (Break)

Ground Floor - Part Retail Vacant 700 65.03

Ground Floor - Part Office Vacant 3,902 362.50

1st Floor Office Vacant 11,505 1,068.85

2nd Floor - South Office Vacant 3,904 362.69

High Street 13/12/2020 2nd Floor - South A, B & D Office 4,041 375.42 £48,492 £12.00 14/12/2015 14/12/2018 TBO on 6 months notice GRP Ltd (14/12/2018)

2nd Floor - East Suite C Office Vacant 1,200 111.48

2nd Floor - East Suite E Office Vacant 1,623 150.78

3rd Floor Office Vacant 11,505 1,068.85

4th Floor Office Vacant 11,505 1,068.85

5th Floor South Office Vacant 3,872 359.72

Inspired 5th Floor - Suite A Office 3,651 339.19 £38,336 £10.50 17/10/2013 16/10/2018 Outsourcing Ltd Inspired 5th Floor - Suite B Office 3,918 363.99 £41,139 £10.50 25/03/2015 16/10/2018 Outsourcing Ltd Inspired Rolling break option. 1 Car Parking Space Parking £1,500 10/02/2015 Outsourcing Ltd 1 months notice by either party Inspired Rolling break option. 2 Car Parking Spaces Parking £3,000 12/11/2015 Outsourcing Ltd 1 months notice by either party High Street Rolling break option. 1 Car Parking Space Parking Boutique £1,500 21/07/2014 6 months notice by either party Finance Limited

49 Car Parking Spaces Parking Vacant

The North Eastern Sub Station Sub Station 24/06/1972 Electricity Board

Total 61,326 5,697.35 £133,967

SERVICE CHARGE EPC The current service charge budget for 2017/18 is £314,862, equating to £5.13 per sq ft. Full certificates are available on request.

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL CUTHBERTHOUSE NEWCASTLE UPON TYNE NE1 2ET

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL

DEVELOPMENT POTENTIAL Cuthbert House is a prominent, flexible building located centrally within Newcastle Upon Tyne city centre, a short walking distance to the main retail core, and Central Station. As such, the property provides an excellent opportunity for conversion to a range of alternative uses, including; residential, student and hotel.

OFFICE REFURBISHMENT Occupier take-up in Newcastle’s city centre and out of town markets accelerated during the third quarter of 2017, with 167,243 sq ft of office accommodation transacted over 56 deals. The city centre supply of grade A accommodation fell in 2017 to 134,601 sq ft following a number of lettings to a variety of national occupiers including; NRFB, Epic Gaming and . Supply was further diminished in 2017 due to a number of buildings being converted to residential under Permitted Development Rights. Consequently, Newcastle’s current vacancy stands at 4.2% which is the lowest in seven years. With a limited pipeline of Grade A accommodation and prime city centre rents achieving in region of £20 - £22 psf, Cuthbert House provides an excellent opportunity to capitalise on the limited supply through a comprehensive office refurbishment of the property.

HOTEL The property is located centrally within within a short walk from Newcastle railway station and the city’s core retail, leisure and business centres. Its location and the building lend themselves well to a potential redevelopment to a budget or premium hotel, subject to planning (STP). The UK regional hotels market has enjoyed record trading over the past 12 months with occupancy levels breaking 70% for the first time since 2011 and the Average Daily Rate (ADR) standing at £72 per room. With further growth forecast for 2018, Cuthbert House provides excellent opportunity to capitalise on this growing sector.

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL CUTHBERTHOUSE NEWCASTLE UPON TYNE NE1 2ET

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL

RESIDENTIAL STUDENT Quality income producing investments remain the staple of the With a student population of in excess of 50,000 (36,000 full traditional Private Rented Sector (PRS), with strong ongoing demand time undergraduates) from two popular Universities (Newcastle for standing investments from property companies and private equity and Northumbria) conversion to student accommodation is another funds together and ongoing institutional interest in large Build to Rent opportunity at Cuthbert House. There is a pipeline in Newcastle of opportunities. With buy-to-let investors becoming less active in the approximately 3,700 beds (under construction) however older schemes investment marketplace due to Government policy changes, a wide such as Richardson Road and Henderson Hall which Newcastle range of corporate entities (from small to large) have stepped in to University have recently closed, consisted of 1,500 beds. the market to take advantage of the defensive return profile which We calculate there are approximately 15,000 purpose built student bed residential investment can offer. Demand therefore remains strong for spaces available, both University and privately owned, which is a ratio income producing residential investments in major regional cities like of 42% to the number of full time undergraduate students. Privately Newcastle. owned studios in Newcastle are currently achieving rents in the region Cuthbert House provides an excellent opportunity to capitalise on of £140 per week to £285 per week. The open planned floor plates at this demand and being well suited to conversion to residential, given Cuthbert House could provide an excellent opportunity for conversion the open planned floor plates and the now permanent permitted to student accommodation benefitting from ideal access to public development rights for office to residential conversion. transport and City Centre amenities..

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL CUTHBERTHOUSE NEWCASTLE UPON TYNE NE1 2ET

LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL

VAT The property is registered for VAT and it is envisaged that the transaction will be treated as a Transfer of a Going Concern (TOGC).

DATAROOM For access to the Allsop dataroom, please use the following link: https://datarooms.allsop.co.uk/register/cuthberthouse

PROPOSAL Offers sought in excess of£3,750,000 (Three Million, Seven Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect avery low capital value of £61.15 psf.

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

James Salmon Jack Robson Jonathan Wright Ciaran McGivney 020 7543 6880 0113 243 7952 020 7543 6725 020 7543 6888 [email protected] [email protected] [email protected] [email protected] www.allsop.co.uk

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 02.18