Naylors’ investment team has acquired a significant retail parade on Gosforth High Street, which was recently placed on the market with an asking price of £3,250,000.
The investment, which was acquired on behalf of Halcyon Group, comprises eight retail units and occupies a prominent location at the junction of High Street and Ivy Road, between Gosforth’s two main car parks.
The retail parade is let to a number of businesses including The Gym Ltd who account for 47% of the property’s income and have recently signed a new 15 year lease. Other tenants include Subway, Saks hairdressers and St Oswald’s Hospice as well as Bradley Hall and Andrew Craig Estate Agents.
Fergus Laird, head of investment at Naylors who acted on behalf of Halcyon said: “Gosforth High Street is one of Newcastle’s most affluent suburbs, we were aware of this opportunity coming to the market and were very keen to secure a deal for our client given the strength of the location and the strong tenant mix, particularly The Gym Ltd who have recently floated on the stock exchange.”
He continued: “Our client has an excellent track record in acquiring commercial investments and as a cash buyer was able to complete the purchase quickly. We are actively looking for similar opportunities for a number of investors.”
The property was sold by Metcalf Harland on behalf of administrators, the asking price reflected a net initial yield of 7.81% with a revisionary yield of 9.01%.
Phil Garner of Halcyon commented: ‘We are very pleased to have secured this fantastic opportunity which received a very high level of interest. We will be exploring a number of avenues to improve the asset value over the next few years.”
The retail parade has one vacant unit of 468sqft which Naylors’ retail agency department has been appointed to let.