The property earns rental income of around £268,000 a year (net initial yield 8.6%). The building, opposite St Nicholas Cathedral, was acquired by Buccleuch Property in 2000. Naylors acted for Buccleuch Property, Edwin Thompson for the purchasers.
Another city centre sale has involved New England House with its retail and offices near Haymarket Metro station. Bilfinger GVA, for clients of LaSalle Investment Management, sold a long leasehold interest in the property for £2.518m (net initial yield 8.93%) after deducting purchaser’s costs. Tenants include the Secretary of State for Defence and Reed Recruitment.
Luke Symonds, senior investment surveyor at Bilfinger GVA says: “Well located offices providing flexible space are seeing strong demand in Newcastle.”