Orchard Street Investment Management has acquired Newcastle Shopping Park from PATRIZIA for £40.5m on behalf of a pension fund client.
The retail park is located in Byker, Newcastle upon Tyne, just 1.7 miles east of the city centre. The 12.9-acre freehold site provides 233,214 sq ft of retail space anchored by a 68,320 sq ft Asda superstore.
The fully let scheme comprises 10 retail warehouse units, a newly opened NRG Gym, office space, a social club and a petrol station, with 502 car parking spaces.
The park generates a total passing rent of £3.14m per annum and has a WAULT of 8.9 years.
Following completion of the deal, Orchard Street will pursue several ESG-led asset management initiatives at the park, including the installation of solar PV panels, removal of gas systems to upgrade EPC ratings to A+/A and the installation of EV charging infrastructure.
Fergus Egan, partner at Orchard Street, said: “Newcastle Shopping Park is a high quality, income-generating asset in a thriving urban location with significant ESG potential. Its strong tenant mix, strategic location, and potential for further development make it a key addition to our growing UK portfolio.”
Ker Gilchrist, head of investment management UK at PATRIZIA, added: “The completed disposal of Newcastle Shopping Park marks the successful conclusion of PATRIZIA’s value-add strategy for the asset. Acquired in 2020 during challenging market conditions, the asset was actively repositioned to drive rent growth, enhance tenant mix and achieve 100% occupancy ahead of sale.”
KLM acted on behalf of Orchard Street and Savills represented PATRIZIA.
