CUTHBERTHOUSE NEWCASTLE UPON TYNE NE1 2ET LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL - Allsop
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CUTHBERTHOUSE NEWCASTLE UPON TYNE NE1 2ET LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
CUTHBERTHOUSE
NEWCASTLE UPON TYNE NE1 2ET
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
Newcastle Central Station
Newcastle
University
CITY CENTRE
QUAYSIDE
Monument
Northumberland
Street
Manors
Sage Tyne Bridge Trinity Gardens CUTHBERT HOUSE Metro Radio Intu Eldon Central
Gateshead Quayside Arena Square Library
Development
55˚ North Residential Grey Street
Development Northumbria University
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
CUTHBERTHOUSE
NEWCASTLE UPON TYNE NE1 2ET
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
INVESTMENT CONSIDERATIONS PROPOSAL
■■ Prominent City Centre office with excellent ■■ Excellent development opportunities including Offers sought in excess of £3,750,000 (Three Million,
asset management and development potential potential for hotel, refurbished offices, student Seven Hundred and Fifty Thousand Pounds) subject to
or traditional residential uses (STP) contract and exclusive of VAT. A purchase at this level
■■ Well located adjacent to Tyne Bridge, a short would reflect a very low capital value of £61.15 psf.
walk from Newcastle Central Station ■■ Currently producing a passing rent of
■■ Freehold £133,967 per annum, reflecting £11.02 psf over
■■ The property comprises 61,326 sq ft of office
the office accommodation DATAROOM
accommodation with an onsite café and ■■ Potential to gain vacant possession in For access to the Allsop dataroom, please use the following link:
under-croft parking for 53 cars December 2018 https://datarooms.allsop.co.uk/register/cuthberthouse
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
CUTHBERTHOUSE
NEWCASTLE UPON TYNE NE1 2ET
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
DEMOGRAPHICS
With a total population of approximately 280,000
people, the City is home to approximately
169,000 employees, making it the largest
employment centre in Tyne and Wear. According
to PROMIS, 23.9% of all employees are employed
in professional office based roles.
Newcastle upon Tyne is a thriving student city,
home to both the University of Newcastle and
Northumbria University. The universities attract
a combined total of approximately 51,000
students each year from over 100 countries.
As one of the prime tourism destinations in
the UK, it is estimated that approximately 17
million people visit Newcastle upon Tyne each
year, spending around £1.4 billion. Over 18,000
people are employed in the tourism sector in
Newcastle and Gateshead.
A1056 A192 Whitley Bay
Newcastle
International A19
Airport East
North Brunton A193
Gosforth
A191
A189
A1 North
Gosforth Longbenton Shields
A696
South
Gosforth A1058 South
Shields
LOCATION A188 A187
A186
Newcastle upon Tyne is the regional capital of the North East and the A69
principle focus of economic activity within the region. Located 105 miles A6085 Wallsend
(168 km) south of Edinburgh and 270 miles (434 km) north of London, A191
A167
NEWCASTLE
Newcastle upon Tyne is the largest employment centre in Tyne & Wear as UPON TYNE A183
Arthur's Hill A193 Hebburn
well as an important hub of tourism and culture in the UK.
A186 A185 A1018
Newcastle upon Tyne benefits from excellent road and rail links. Newcastle CUTHBERT
has excellent access via the A1 south to Leeds and north to Edinburgh. Road HOUSE
Byker
communications via the A19 to the south have been significantly improved Jarrow A1300
A695
by the recent duelling of the Tyne Tunnel which was completed in 2012 and South
Blaydon
has involved the introduction of a second tunnel. A194
Tyneside
Newcastle Central Station is situated at a key point on the UK rail network Gateshead
A1 Dunston A184 A19
with direct access to many major cities. The East Coast Mainline has a
travel time to London of approximately 2 hours 50 minutes and less than
1 hour 30 minutes to Edinburgh. The City also benefits from an extensive
Metro system. A194(M)
A167
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL A195
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NEWCASTLE UPON TYNE NE1 2ET
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Situated a 2 minute walk to the north from Cuthbert
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10 mins House, the East Pilgrim Street Masterplan area is
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the premier strategic commercial development site
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whilst significantly improving the public realm.
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Central to the regeneration is Bank House Square,
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which fronts Swan House Roundabout, is set to
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Centre to the pedestrian access between Quayside and
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the City Centre, which includes improvements
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M Stephenson Quarter is a mixed use 10 acre
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Tyne SCIENCE CENTRAL
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Central Station Sage
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A 24 acre landmark development for science,
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education and business. The University of
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typifies the research and science focus of Science
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NK Central. In addition, planning is underway to
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develop a Newcastle Laboratory, specifically geared
QUARTER D towards science based commercial activities.
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Planning permission has also been granted for
two Grade A office buildings, which will provide
a total of 240,000 sq ft of new build office
Metro Radio Arena
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accommodation. These buildings will be developed
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in partnership with Legal and General Capital,
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who have already committed £65 million to the
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scheme, creating approximately 2,000 jobs.
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Cuthbert House occupies a highly prominent position fronting 55 Degrees North 27.1m
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fixture at the heart of Newcastle upon Tyne, linking the A167
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Cuthbert House is advantageously located between the Quayside, ya l Ar FB
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an attractive and lively business and leisure district to the south,
and the prime retail and entertainment area surrounding Grey (site of)
Multistorey Car Par
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Street and Northumberland Street to the north.
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Access to the property is provided by Manor Chare via the
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A186. Pedestrian access is also available on Manor Chare as
Croft Stairs
well as via a subway, which provide links to Mosely Street,
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SITE
The property comprises a site area of 0.68 acres.
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TENURE Manor Chare Apartments
The property is held Freehold.
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House
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Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
CUTHBERTHOUSE
NEWCASTLE UPON TYNE NE1 2ET
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
DESCRIPTION
Cuthbert House comprises office accommodation over lower ground, ground and four upper floors. The accommodation extends to approximately
5,697.35 sq m (61,326 sq ft) which includes 700 sq ft of café space to the ground floor. The property benefits from flexible floor plates which allow for potential
subdivision as well being well suited for conversion to a variety of alternative uses. The property benefits from secure under-croft parking for 53 cars.
The building is of concrete frame construction with concrete cladding to the external elevations, and metal framed aluminium double glazed windows
beneath a mansard roof.
The property benefits from the following specification;
• Cycle storage • Two 13-person passenger lifts
• Male, female and disabled access WC’s to each floor • Slab to slab height of 2.85m
• Comfort cooling and perimeter radiator heating throughout • Suspended ceilings with recessed lighting
TYPICAL FLOORPLAN
(FLOORPLANS AVAILABLE
IN THE DATAROOM)
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
CUTHBERTHOUSE
NEWCASTLE UPON TYNE NE1 2ET
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
TENANCY & ACCOMMODATION
Demise Use Tenant Area Area Current Rent Current Rent Lease Start Next Review Lease Expiry Comments
(sq ft) (sq m) (£ p.a.) (£ psf) Date (Break)
Ground Floor - Part Retail Vacant 700 65.03
Ground Floor - Part Office Vacant 3,902 362.50
1st Floor Office Vacant 11,505 1,068.85
2nd Floor - South Office Vacant 3,904 362.69
High Street 13/12/2020
2nd Floor - South A, B & D Office 4,041 375.42 £48,492 £12.00 14/12/2015 14/12/2018 TBO on 6 months notice
GRP Ltd (14/12/2018)
2nd Floor - East Suite C Office Vacant 1,200 111.48
2nd Floor - East Suite E Office Vacant 1,623 150.78
3rd Floor Office Vacant 11,505 1,068.85
4th Floor Office Vacant 11,505 1,068.85
5th Floor South Office Vacant 3,872 359.72
Inspired
5th Floor - Suite A Office 3,651 339.19 £38,336 £10.50 17/10/2013 16/10/2018
Outsourcing Ltd
Inspired
5th Floor - Suite B Office 3,918 363.99 £41,139 £10.50 25/03/2015 16/10/2018
Outsourcing Ltd
Inspired Rolling break option.
1 Car Parking Space Parking £1,500 10/02/2015
Outsourcing Ltd 1 months notice by either party
Inspired Rolling break option.
2 Car Parking Spaces Parking £3,000 12/11/2015
Outsourcing Ltd 1 months notice by either party
High Street
Rolling break option.
1 Car Parking Space Parking Boutique £1,500 21/07/2014
6 months notice by either party
Finance Limited
49 Car Parking Spaces Parking Vacant
The North Eastern
Sub Station Sub Station 24/06/1972
Electricity Board
Total 61,326 5,697.35 £133,967
SERVICE CHARGE EPC
The current service charge budget for 2017/18 is £314,862, equating to £5.13 per sq ft. Full certificates are available on request.
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
CUTHBERTHOUSE
NEWCASTLE UPON TYNE NE1 2ET
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
DEVELOPMENT POTENTIAL
Cuthbert House is a prominent, flexible building located centrally within
Newcastle Upon Tyne city centre, a short walking distance to the main retail
core, Manors Metro Station and Central Station. As such, the property provides
an excellent opportunity for conversion to a range of alternative uses, including;
residential, student and hotel.
OFFICE REFURBISHMENT
Occupier take-up in Newcastle’s city centre and out of town markets
accelerated during the third quarter of 2017, with 167,243 sq ft of
office accommodation transacted over 56 deals. The city centre
supply of grade A accommodation fell in 2017 to 134,601 sq ft
following a number of lettings to a variety of national occupiers
including; NRFB, Epic Gaming and Ubisoft. Supply was further
diminished in 2017 due to a number of buildings being converted
to residential under Permitted Development Rights. Consequently,
Newcastle’s current vacancy stands at 4.2% which is the lowest in
seven years.
With a limited pipeline of Grade A accommodation and prime city
centre rents achieving in region of £20 - £22 psf, Cuthbert House
provides an excellent opportunity to capitalise on the limited supply
through a comprehensive office refurbishment of the property.
HOTEL
The property is located centrally within Newcastle city centre within
a short walk from Newcastle railway station and the city’s core
retail, leisure and business centres. Its location and the building
lend themselves well to a potential redevelopment to a budget or
premium hotel, subject to planning (STP).
The UK regional hotels market has enjoyed record trading over the
past 12 months with occupancy levels breaking 70% for the first
time since 2011 and the Average Daily Rate (ADR) standing at £72
per room. With further growth forecast for 2018, Cuthbert House
provides excellent opportunity to capitalise on this growing sector.
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
CUTHBERTHOUSE
NEWCASTLE UPON TYNE NE1 2ET
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
RESIDENTIAL STUDENT
Quality income producing investments remain the staple of the With a student population of in excess of 50,000 (36,000 full
traditional Private Rented Sector (PRS), with strong ongoing demand time undergraduates) from two popular Universities (Newcastle
for standing investments from property companies and private equity and Northumbria) conversion to student accommodation is another
funds together and ongoing institutional interest in large Build to Rent opportunity at Cuthbert House. There is a pipeline in Newcastle of
opportunities. With buy-to-let investors becoming less active in the approximately 3,700 beds (under construction) however older schemes
investment marketplace due to Government policy changes, a wide such as Richardson Road and Henderson Hall which Newcastle
range of corporate entities (from small to large) have stepped in to University have recently closed, consisted of 1,500 beds.
the market to take advantage of the defensive return profile which We calculate there are approximately 15,000 purpose built student bed
residential investment can offer. Demand therefore remains strong for spaces available, both University and privately owned, which is a ratio
income producing residential investments in major regional cities like of 42% to the number of full time undergraduate students. Privately
Newcastle. owned studios in Newcastle are currently achieving rents in the region
Cuthbert House provides an excellent opportunity to capitalise on of £140 per week to £285 per week. The open planned floor plates at
this demand and being well suited to conversion to residential, given Cuthbert House could provide an excellent opportunity for conversion
the open planned floor plates and the now permanent permitted to student accommodation benefitting from ideal access to public
development rights for office to residential conversion. transport and City Centre amenities..
LANDMARK OFFICE WITH DEVELOPMENT POTENTIALCUTHBERTHOUSE
NEWCASTLE UPON TYNE NE1 2ET
LANDMARK OFFICE WITH DEVELOPMENT POTENTIAL
VAT
The property is registered for VAT and it is envisaged that the transaction
will be treated as a Transfer of a Going Concern (TOGC).
DATAROOM
For access to the Allsop dataroom, please use the following link:
https://datarooms.allsop.co.uk/register/cuthberthouse
PROPOSAL
Offers sought in excess of £3,750,000 (Three Million, Seven Hundred
and Fifty Thousand Pounds) subject to contract and exclusive of VAT.
A purchase at this level would reflect a very low capital value of £61.15 psf.
For further information or to make arrangements for viewing please contact:
James Salmon Jack Robson Jonathan Wright Ciaran McGivney
020 7543 6880 0113 243 7952 020 7543 6725 020 7543 6888
james.salmon@allsop.co.uk jack.robson@allsop.co.uk jonathan.wright@allsop.co.uk ciaran.mcgivney@allsop.co.uk www.allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to
be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties,
undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as
to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary
searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 02.18You can also read
