Buccleuch Property has sold the iconic 55 Degrees North building in Newcastle upon Tyne. The mixed use property, comprising 165 apartments, two floors of commercial offices, a restaurant and bar, has been purchased by GVA on behalf of a private client at a price reflecting a net initial yield of 8.5%.
Originally purchased by Buccleuch Property in 2005, the building has been effectively asset managed during this time successfully attracting a dynamic mix of commercial tenants, from local radio station Metro Radio to leading web designers, Think. The food and beverage offering has also attracted a fresh pasta bar, Zucchini Pasta and Alpine sports bar Antler combined with its Asian restaurant Buddha.
55 Degrees North is located on the Swan roundabout which forms a gateway entrance to the City from the south and is in close proximity to the City centre, connecting its prime retail pitch to the modern office core on Quayside. The neighbouring East Pilgrim Street regeneration project aims to create a new office, leisure and retail destination for the City and 55 Degrees North is strategically positioned to capitalise on this.
Commenting on the sale, Philip Eves, Investment Director at Buccleuch Property said: “We have worked hard over the past few years to enhance the building, not just by securing a strong mix of commercial tenants, but also by introducing the first digital signage to the city with the arrival of cutting edge screen technology creating a new prime advertising site. The time was right for us to sell the building as it enters an exciting new chapter in the City’s development.”
Naylors, who have managed the property since Buccleuch’s purchase, were appointed to sell the property. Fergus Laird said “Given the iconic nature and strong tenant mix we experienced a high level of interest and a sale was concluded within 4 weeks”.