A prominent Newcastle city centre office has been sold to new owners in a deal worth more than £19m.
London based investment company Topland has swooped for Citygate II in Gallowgate, Newcastle, close to Helix and St James’ Park, a six-storey building with 63,000sqft of office space.
The building is 100% let to three tenants producing £1,592,000 rent every year, reflecting an average rent of £25.30 per sq ft. The building was acquired for £19.375m, reflecting a net initial yield of 7.80%.
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Topland has acquired it from the listed REIT EPIC managed by The Ediston Property Investment Company plc, which had bought the building in January 2016 for £18.95m.
The Tyneside property was acquired alongside an office in Edinburgh, 145 Morrison Street, which was bought for £12.06m.
Sol Zakay, chairman and CEO of Topland, said: “These are quality assets, very well located in dynamic office markets. They provide a strong WAULT (weighted average unexpired lease term), a strong tenant base and also offer optionality in terms of investment strategy.
“These latest acquisitions come off the back of a very busy year for Topland. On the equity side we have deployed over £240m in 2021 - our investment strategy continues to be deal-led with single and multi-let investments across the retail, industrial and office sectors.”
Richard Merryweather, joint head of UK investment at Savills, said: “We are delighted to have advised Topland on this transaction. Both buildings are positioned in prime locations and are perfectly placed to capitalise on investment into the wider area with significant rental growth potential.”
Savills acted for Topland on the acquisition. Property consultancy Allsop acted on behalf of the seller.
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