Retail premises for sale in Northumberland Street, Newcastle Upon Tyne NE1

Location
Newcastle upon Tyne is the cultural, economic and administrative capital of the North East of England and is situated 98 miles north of Leeds, 104 miles south of Edinburgh and 277 miles north of London. The City has a population of approximately 300,200 people (Office for National Statistics 2021) with 1.4 million within 12 miles of the City centre.

The City is easily accessible from the A1(M) and A19, and by rail is connected to London and the rest of the UK via the East Coast Mainline, with journeys to London being 2 hours and 40 minutes. The nearest airport is Newcastle International, located 5 miles to the north.

Situation
The City’s retail offering is focused around the pedestrianised areas of Northumberland Street and Eldon Square shopping centre, the principal entrance to which lies on Northumberland Street and the property itself is centrally situated on Northumberland Street. The Haymarket Metro Station, the Civic Centre and both Newcastle and Northumbria Universities are very close by.
The immediate location has a strong mix of retail and financial services uses with proximity to Santander, Virgin Money, Newcastle Building Society, Halifax Bank, Marks and Spencer and Primark.

Description
The property is mid terraced and of brick built construction providing one retail unit arranged at ground, basement, first, second and third floor levels with rear servicing via a Service yard access. The Skipton Building Society are undertaking a comprehensive re-fit throughout and are due to open in December 2022.

Accommodation

Internal Width
20’ 8”
6.3 m

Ground Floor Sales
1,863 sqft
173.0 sqm

Basement
477 sqft
44.3 sqm

First Floor Sales
493 sqft
45.8 sqm

Second Floor
369 sqft
34.3 sqm

Third Floor
450 sqft
41.8 sqm

Itza

757.2 sqft
70.34 sqm

tenure
Freehold.

Tenancy details
The property is let in its entirety by way of a ten year Full Repairing and Insuring Lease to Skipton Building Society from 20th July 2022 and subject to an upwards only rent review in July 2027. There are no tenant breaks. A 6 month rent free period was granted which ends in January 2023.

Passing rent
£105,000 per annum exclusive reflecting a Zone A rate of £129 which sits comfortably alongside other evidence in the vicinity and has future rental growth potential.

Tenant covenant information
Established in 1853, Skipton is the UK’s fourth largest building society with 98 branches and parent organisation of the Connells group, the UK’s largest estate agency. In the first 6 months of 2022 Skipton saw its membership rise by 20,655 to over 1,103,600. The Group’s net interest margin, a key measure of performance, improved to 1.29% (six months ended 30 June 2021: 0.97%) The key financials for Skipton Building Society are:
• Pre-tax profits for the six months ended 30 June 2022 £160.0m (six months ended 30 June 2021: £159.2m);
• 2021 Total Income was £1.384bn and Group profit before tax was £271.8m (2020: £118.8m)
• Total Assets - £29.468bn The 2021 mortgage book grew by £1.5bn to £23.2bn an annual growth rate of 6.8% (2020: 8.6%).

VAT
The property is elected for VAT and all costs will be subject to VAT at the prevailing rate.

EPC
The Energy Performance Certificate rating for the premises is Category E. A full copy of the certificate is available upon request.

Proposal
We are instructed to seek offers in the region of £1,650,000 (One Million Six Hundred and Fifty Thousand pounds), which reflects a Net Initial Yield of 6% after allowing for the usual purchasers costs.

Contact

Ian angus

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