Buccleuch Property has announced the sale of Collingwood House in Newcastle upon Tyne for £2.95 million to a syndicate client of Chartered Surveying firm, Edwin Thompson.. Located in the heart of Newcastle’s commercial district, the mixed use commercial development currently produces a rental income in the region of £268,000 per annum reflecting a Net Initial Yield of 8.6%.
Collingwood House is a prominent corner building, comprising 19,570 sq ft of fully refurbished retail and office suites across seven floors. The building is on the corner of Collingwood Street and St Nicholas Street, opposite the City’s iconic Cathedral. Just minutes from the recently upgraded Newcastle Central Station and the Metro network, the area has become one of the city’s prime leisure and commercial districts, attracting a mix of professional occupiers. The office development was originally acquired by Buccleuch Property in 2000.
During its ownership, Buccleuch Property has actively managed and refurbished the retail and office suites to deliver high quality accommodation for the building’s seven established tenants including Subway, Simpson & Marwick Solicitors, and Pearson Professional Investments Ltd.
Philip Eves, Director of Buccleuch Property commented: “We are extremely pleased with the interest and outcome achieved at Collingwood House. This reflects the proactive asset management strategy adopted with this property, bringing to market a quality refurbished building with a strong tenant mix. Newcastle is already home to some major national office operators, and demand is high throughout the commercial sector due to a strengthening North East economy and a strong transport network. With a decreasing supply of quality city centre office space in Newcastle, Collingwood House has presented a strong investment opportunity, which will continue to deliver in the future.”
John Haley, Partner and Head of Commercial Property at Edwin Thompson, who acted on behalf of the purchaser, commented: “Edwin Thompson is pleased to have acquired for retained clients a distinctive Newcastle City Centre property and will be continuing the upgrading and improvement policy adopted by Buccleuch Property. The purchase follows a series of other UK acquisitions made as part of a highly specialist investment and management service.”
Naylors acted on behalf of Buccleuch Property. Edwin Thompson acted on behalf of the purchasers.