Download - Allsop

On the instructions of Jon Gershinson 

and Louisa Brooks of Allsop LLP acting 

as Joint Fixed Charge Receivers 

Milburn Quarter 

Dean Street 

Newcastle upon Tyne 

Mixed Use City Centre 

Investment Opportunity 

020 7588 4433

Milburn Quarter 

Dean Street 

Newcastle upon Tyne 

investment considerations 

n 

n 

n 

n 

Attractive freehold City Centre island site 

Mixed use investment consisting of retail, leisure, 

residential and offices 

WAULT of 5.5 years to expiry and 4.43 years to break 

Primarily listed buildings which are currently excluded 

from empty rates 

n Situated in a BPRA qualifying area, which gives 100% 

capital allowances for refurbishment and conversion costs 

n Significant asset management opportunities including 

change of use, subject to necessary planning consents 

n A vacancy rate of 35% gives immediate opportunities 

to drive net income through lettings 

n The estate offers income as follows:- 

n Gross current income: £1,039,412 

n Non recoverables: £267,724 

n Net income: £771,688 

Offers are sought in excess of £6,500,000 (Six Million Five 

Hundred Thousand Pounds) subject to contract and VAT. 

A purchase at this level would reflect the following: 

Net Initial Yield 15.11% 

Net Net Initial Yield 11.22% 

Capital Value £42.38 

Whilst consideration will be given to offers on the individual parts, 

it is the vendor’s preference to sell as a whole

Location 

Newcastle upon Tyne is located 280 miles north of London and 

109 miles south of Edinburgh. The city is the regional capital of 

the North East of England, with a population of approximately 

273,000 people (2001 Census). It forms part of the Tyneside 

conurbation, which with a population of in excess of 1 million 

people, is the seventh largest in the UK. 

The city is the largest office centre in the region attracting 

occupiers including The Sage Group Plc, Proctor & Gamble, 

BA, Orange, AA, GE Capital and Eaga Plc and has a total office 

stock in excess of 11 million sq ft with a low void rate. Large 

scale regeneration projects have boosted the profile of the city 

over the last decade and have had a knock-on effect in terms 

of attracting inward investment, occupiers and investors to the 

city. This has included the recent development of Newcastle 

Quayside, the Millennium Bridge, the Baltic Centre for 

Contemporary Art and the Sage Music Centre. 

The City Council are keen to progress plans to make the city a 

centre for science and technology. To this end the ‘Science City’ 

scheme on the former Scottish & Newcastle Brewery site in the 

city centre will include up to 1,000,000 sq ft of space to house 

leading-edge scientific research, teaching and business facilities. 

This forms part of a £250 million proposal to regenerate the 

city’s western fringe, which has the potential to be one of the 

largest inner-city regeneration projects in the UK. 

B1311 

Gallowgate 

Forth Banks 

B1600 

Clayton St 

B1307 

Percy St 

NewGate St 

Westgate Rd A186 Westgate Rd 

Clayton St W 

A186 Neville St 

Newcastle 

CITY CENTRE 

Grainger St 

B1307 

Great Market 

Forth St 

Grey St 

Grey St 

New Bridge St W 

St Nic’s Chu 

Sid e 

Pilgrim St 

Close B1600 

rch Yard 

John Dobson St 

Dean St 

Collingwood St A186 Mosley St 

Westgate Rd 

St Nicholas’ St 

B1309 

Market St 

Durant Rd 

A167(M) 

Sandhill 

Queen St 

A167(M) 

A186 

Northumbria 

University 

School of Design 

Melbourne St 

A167 Tyne Bridge A167 

Pilgrim St 

Manors 

Falconar St 

Argyle St 

Simpson Terrace 

B1600 Quayside B1600 

A193 New Bridge St 

Clarence St 

Gibson St 

B1600 

Melbourne St Buxton St Howard St 

A186 City Rd 

A69 

A68 

Transport 

Newcastle is situated at a key point on the UK rail network 

with direct access to many major cities. The electrified 

East Coast Mainline has a travel time to London of around 

2hrs 45mins and less than 1hr 30mins north to Edinburgh. 

The region itself is well served by the Tyne & Wear 

Metro system, which has four stations in the city centre, 

including one at Grey’s Monument, around 400 metres 

from the property. 

Newcastle International Airport is the North East’s major 

airport offering regular scheduled services to many UK 

and international destinations. 

A68 

Ouston 

Airfield 

A68 

A69 

Newcastle 

International 

Airport 

A696 

Newburn 

A694 

A692 

A691 

A1 

Bishop 

A693 

A1 

Gosforth 

NEWCASTLE 

UPON TYNE 

A1 

A688 

A167 

A184 

Gateshead 

A167 

A1058 

A1 (M) 

A1 (M) 

A194 

Chester-le-Street 

Durham 

Whitley Bay 

A19 Tynemouth 

South 

Shields 

Jarrow 

A690 

A1300 

A1018 

A19 

A1231 

SUNDERLAND 

A19 

A1018 

A19 

A179 

HARTLEPOOL

24 

52 

50 

152 

LANE 

27 

14 8 6 

10 

DRURY 

FB 

29 

STREET 

ST NICHOLAS' 

TCB 

4 

32.0m 

ST NICHOLAS' MOSLEY STREET 

SQUARE 

Scottish 

Provident 

House 

Mon 

31 to 33 

36 44 

Cathedral Church 

of St Nicholas 

42 

32 40 

38 

34 

ST NICHOLAS' CHURCH YARD 

30 

28 

Maranar 

House 

7 

26 

Chapter Office 

and Library 



10 

ST NICHOLAS' 

23.8m 

Cathedral Buildings 

CHURCH YARD 

25 to 37 

DEAN STREET 

14 

23 

46 

48 42 

44 

17 

to 

21 

40 

38 34 

30 

Low Bridge 

Dean 

Court 

20 

18 

FB 

Bridge 

House 

Multistorey 

Car Park 

PILGRIM STREET 

Grainger 

Market 

Shelter 

Eldon 

Square 

Northumberland Street 

Grey Street 

University 

Cathedral 

Buildings 

Milburn 

House 

Central 

Motorway 

Quayside 

Trinity 

Gardens 

7 





AMEN CORNER 

12 

Hotel 

Painter Heugh 

Dean Street 

29.0m 

SIDE 

AMEN CORNER 

PH 

St Nicholas 

Chambers 

Milburn House 

DEAN STREET 

Posts 

12.5m 

14 10 

6 

C 

St Nicholas 

Chambers 

Car Park 

ST NICHOLAS' STREET 

86 

40 to 46 

The St Nicholas Building 

Post 

El Sub Sta 

Car Park 

69 to 75 

61 

SIDE 

LB 

Tyne House 

Central 

Station 

FB 

Black Gate 

FB 

© Crown Copyright, ES 100004106. For identification purposes only. 

Dog Leap Stairs 

43 

41 

39 

37 

35 

Situation 

The Milburn Quarter sits on an island site in the historical heart of 

the city. The immediate vicinity is steeped in history and architectural 

interest, located between Newcastle Cathedral and the Norman 

castle keep. Notable local historical figures Admiral Lord Collingwood 

and the engraver Thomas Bewick, both lived on the site. 

Newcastle Central Station, Eldon Square, the prime shopping 

area in the city and Newcastle Quayside are all a short walk away. 

Grey Street forms the very heart of the historic office core of 

Newcastle upon Tyne, and is home to many major occupiers 

including Lloyds Bank, HBOS, Go Ahead Group, NEDL, Northern 

Recruitment Plc and Deloitte’s. This street is also a major cultural 

destination with a wide range of high quality bars and restaurants, 

Browns and Las Iguanas being the most recent arrivals, together 

with the Theatre Royal which enjoys a national reputation and is 

the northern home of the Royal Shakespeare Company. 

Newcastle’s main shopping centre, Eldon Square, has an 

entrance opening onto the top of Grey Street, the city’s prime 

retail pitch which has a diverse range of retailers which include 

H&M, Bravissimo, Pret à Manger and Canterbury. 

Newcastle City Council and Brookfield are planning a major £500m 

retail-led redevelopment of the East Pilgrim Street area, only a short 

distance away. This will lead to a southward shift of the retailing core. 

Description 

The Milburn Quarter consists of five distinct assets which 

form an almost contiguous estate. 

The buildings comprise retail and restaurant units on the 

ground floor, with residential accommodation and office 

accommodation of varying states of refurbishment above. 

There is a small open site providing car parking for 15 cars 

on The Side - bordered in red, above - of the 15 spaces 

only one is currently let at £1,300. 

Office 65.75% 

Retail 8.26% 

Leisure 20.47% 

Residential 4.89% 

Vaults 0.63%

Milburn House

UP 

SOUTH AREA 

Milburn House 

■ WAULT of 5.59 years to expiry 

and 4.43 years to break 

■ 13.13% vacant 

■ 12% of the income from leisure 

■ Gross Income: £665,368 

■ Non Recoverables: £168,963 

■ Net Income: £496,405 

description 

Milburn House is a substantial and imposing office 

building occupying a prominent position, which at 

the time of its development in 1905, was Europe’s 

largest speculative office development. 

The building which is Grade II listed was constructed 

to make a statement of scale and opulence and 

internally has a number of distinctive features 

including Arts and Craft tiling and wooden panelling, 

whilst three substantial light wells bring lots of natural 

light into the space. 

Large areas have been fully refurbished and offer 

good quality open space, in particular where suites 

have had the central corridor removed. 

The building has lift access to all the main office 

floors with the exception of the very top floor, referred 

to as Upper A. Planning consent has recently been 

granted for conversion of this floor from offices and 

caretakers flat to seven letting rooms for business 

travellers. 

The current occupational profile is a mixture of larger 

occupiers, for example Lycetts Insurance, down 

to smaller single room occupiers, some of whom 

have taken their first step up from serviced office 

accommodation. The scale of the building does 

offer the opportunity for a landlord to offer their 

tenants to grow within the building. The provision 

of a fully serviced office offer is an obvious 

opportunity to enhance this. 

The ground floor of the 

property provides two 

restaurant units, benefitting 

from the building’s proximity 

to the Grey Street and 

Quayside leisure circuits. 

WEST AREA 

CENTRAL HALL 

NORTH AREA

Milburn House - tenancy schedule 

Floor Area 

Sq.Ft. 

N.Int 

Term 

From 

Lease 

To 

Break 

Current 

Rent p.a. £ 

£ 

p.s.f. 

Date of 

Next Review 

Next Agreed Rent/Comments 

Upper A Upper A Floor Void 1,813 Planning consent for the conversion to hotel rooms 

Upper A Floor - 

Caretakers Flat 

Mr & Mrs J Field 2,325 Electricity Only Recharged 

Sub Total 4,138 

Floor A Floor A.1 Future Transport Systems Limited 680 11/05/2010 10/05/2016 11/05/2013 £9,010.00 £13.25 11/05/2013 

Floor A.2 Sharon Langridge 1,200 10/08/2007 09/08/2013 £14,064.00 £11.72 

Floor A.3 B-Skill Limited 536 03/10/2011 01/12/2013 £6,432.00 £12.00 

Floor A.4, 

A.5 & A.6 

Ugo Fagandini, Philip Robson, David Gold, 

Christopher Reah T/A Joseph Miller & Co 

3,797 20/02/2006 19/02/2016 £39,330.00 £10.36 

Floor A.7 Colour Urban Design Limited 530 15/09/2008 £6,360.00 £12.00 Tenancy At Will 

Floor A.8 Void 2,330 

Floor A.9 Colour Urban Design Limited 1,264 01/06/2006 31/05/2012 £14,536.00 £11.50 01/06/2011 Holding over 

Floor A.10 Fredrick G K Egner & Mark G K Egner 909 18/03/2010 17/03/2013 £10,453.00 £11.50 Tenant Otb anytime with 3 months notice 

Floor A.11 Economic Research Services Limited 689 20/12/2011 19/12/2014 20/06/2013 £6,890.00 £10.00 

Floor A.12 Officespan Limited 685 01/07/2005 30/06/2015 01/07/2012 £7,535.00 £11.00 01/07/2012 Tenant only option break 

Floor A.13 Void 455 

Floor A.14 Admiral Public Relations & Marketing Ltd 1,385 31/03/2010 30/03/2013 31/03/2013 £16,620.44 £12.00 Rent increases to £18,698 if lease assigned 

Floor A.15 B-Skill Limited 1,386 02/12/2008 01/12/2013 £18,711.00 £13.50 02/12/2011 

Floor A.16 

Pantheon Macroeconomic 

Advisors Limited 

1,023 05/03/2012 04/03/2018 05/03/2014 £5,882.25 £5.75 Rent increase on 5/3/13 to £11,764.50 

Sub Total 16,869 £155,823.69 

Floor B Floor B.1 Tnei Services Limited 3,272 03/08/2007 02/08/2017 £39,264.00 £12.00 03/08/2012 Service charge capped at £13,088 

Floor B.2 

J H Boaden, J P W Green, G B Mills & M 

J Smith (Practising As Mills & Co) 

5,503 30/11/2007 29/11/2017 £66,036.00 £12.00 30/11/2012 

Floor B.3 SJD (North East) Limited 3,351 28/05/2008 27/05/2018 28/05/2013 £40,212.00 £12.00 28/05/2013 Tenant only option break on 6 months notice 

Floor B.4 Golley Slater Group Limited 2,286 04/08/2008 03/08/2018 04/08/2013 £29,718.00 £13.00 04/08/2013 

Floor B.5A 

Jonathan Hendy Boaden, Jonathan Peter 

Wake Green, Guy Burrell Mill, Michael 

John Smith T/A Mills & Co 

686 20/12/2011 29/11/2017 30/11/2012 £8,200.00 £11.95 

Floor B.6 Void 2,577 

Sub Total 17,675 £183,430.00 

Floor C 

Floor C1, C4, 

C6 & C8 

Lycett Browne-Swinburne & 

Douglass Ltd 

8,793 01/05/2010 30/04/2020 £80,000.00 £9.10 01/05/2015 

Tenant only option break on 6 months notice. 

Rent free period due if breaks not exercised 

Break exercised - Penalty of £8893.42 

If exercised 

Floor C.2 Jump Up Limited 1,470 18/02/2009 17/02/2015 £19,845.00 £13.50 18/02/2012 Tenant only option break 

Floor C.3 J L Harpham 480 01/12/2009 31/12/2012 £3,840.00 £8.00 

Floor C.5 Managers Office 490 Service charge paid through service charge 

Floor C.5A Void 432 

Floor C.6A Void 582 

Floor C.6B Smith Cole Wright (Newcastle) Limited 919 28/02/2011 27/02/2014 £10,500.00 £11.43 Tenant Otb anytime with 3 months notice. 

Floor C.7 Void 513 

Floor C.9 Void 3,449 09/12/2012 

Floor C.10 Perro Design & Communications Ltd 661 01/01/2011 31/12/2013 £8,758.25 £13.25 

Floor C.11 Void 584 

Sub Total 18,373 £122,943.25

Floor Area 

Sq.Ft. 

N.Int 

Term 

From 

Lease 

To 

Floor D Floor D.1 Void 3,620 

Floor D.2 Void 1,075 

Floor D.3 Janet Plater Management Limited 330 22/01/2011 21/01/2021 22/01/2016 £2,650.00 £8.03 22/01/2016 Tenant only option to break 

Floor D.3A Newcastle Ne1 Limited 1,290 03/05/2011 02/05/2016 £14,190.00 £11.00 Otb anytime after 3/5/12 - 6 Months Notice 

Floor D.4 James Richard Duckworth 590 01/08/2009 31/07/2019 31/07/2014 £4,700.00 £7.97 01/08/2014 Mutual option to break 


Floor D.6B Void 1,344 

Floor D.7 Plus 

Cellar E.1 

David Parker 960 01/04/2008 31/03/2018 £5,000.00 £5.21 01/04/2013 

Floor D.8 & D6a 

& D11 

Sadler Brown Limited 3,393 27/04/2010 26/04/2016 27/04/2013 £30,845.00 £9.09 Notice to break served 

Floor D.9 Void 480 


Sub Total 17,446 £57,385.00 

Floor E Floor E.2 R W Napier 480 16/02/2001 02/02/2016 £2,700.00 £5.63 02/02/2011 Uplifts on rent review limited to 10% passing rent 

Floor E.3 Void 940 

Floor E.4 Gary Simpson Wilson 475 03/05/2006 02/05/2016 £4,750.00 £10.00 03/05/2011 

Floor E.4A 

Mohinder Partrap Dhirani & Rajeev 

Dhirani(Edp) 

480 01/01/2001 31/07/2006 £2,500.00 £5.21 


Floor E.5A Managers Store 170 

Floor E.6A Jeremy Benn Associates 1,260 15/04/2011 14/04/2017 15/04/2014 £10,250.00 £8.13 Tenant only option to break 

Floor E.6B Void 570 

Floor E.7 Void 2,221 

Floor E.7A Void 339 





Floor E.12A Lynn Dobson T/A Abacus Business Services 240 01/01/2012 31/12/2012 £1,466.00 £6.11 Mutual Otb anytime with 1 months notice 


Floor E.13-15 Void 2,649 



Sub Total 13,675 £21,666.00 

Floor F Floor F.1 Void 2,767 

Floor F.2 El Torero Limited 3,500 29/04/1999 28/02/2020 £32,500.00 £9.29 29/04/2014 

Floor F.3A, F4 D W Walker, L A Caisley, C E Potts & W A 4,294 28/02/2008 27/02/2018 28/02/2013 £36,681.83 £8.54 28/02/2013 Tenant Otb - notice served 

& Vaults 1A, 

1B & 8 

Ward T/A Patterson Glenton Stracey 

Floor F.3B Void 1,043 

Floor F.5 Void 405 

Floor F.6 Void 720 

Sub Total 12,729 £69,181.83 

Ground Flr 

Restaurant & 

Stores 1 & 2 

Stephen Grieveson & Rossario Arceri 3,167 21/02/2011 20/02/2031 £43,333.33 £13.68 21/02/2016 

External Seating Stephen Grieveson & Rossario Arceri 19/12/2011 20/02/2031 £5,000.00 21/02/2016 Rent Free To 19/12/12 Rent Review 21/2/16, 21/2/21, 21/2/26 

Area 

Sub Total 3,167 £48,333.33 

Break 

Current 

Rent p.a. £ 

£ 

p.s.f. 

Date of 

Next Review 

Next Agreed Rent/Comments

Floor Area 

Sq.Ft. 

N.Int 

Term 

From 

Lease 

To 

Break 

Current 

Rent p.a. £ 

Vaults Floor D Vault A Lycett Brown Swinburne & Douglass 132 01/08/2010 31/07/2012 £600.00 £4.55 

£ 

p.s.f. 

Date of 

Next Review 


Floor D Vault B John Blackburn T/A Jca Spencer 288 19/05/2004 N/A Tenancy at will. No charges. 

Floor D Vault C 

Floor D Vault D 

J H Boaden, J P W Green, G B Mills 

& M J Smith (Practising As Mills & Co) 

James Richard Duckworth 

T/A Freeman Rich 

Floor D Bin Store 163 

Floor E Vault 2 Void 120 

Floor E Vault 3 


Lycett Browne-Swinburne 

& Douglass Ltd 

Charles Taylor Administration 

Services Ltd 

138 29/01/2008 N/A £1,050.00 £7.61 Tenancy at will, mutual break 

180 29/09/2010 28/09/2012 £600.00 £3.33 Holding over 

138 01/08/2010 31/07/2012 £515.00 £3.73 Holding over 

150 29/09/2010 28/09/2012 £525.00 £3.50 Holding over 

Floor E Vault 5 Tnei Services Limited 138 24/06/2010 23/06/2012 £690.00 £5.00 Holding over 


& 11 

Messrs F & M Egner 191 01/08/2010 17/03/2013 £640.00 £3.35 

Floor E Vault 7 Void 119 Vault unoccupiable without large capital expenditure works 

Floor E Vault 9 Void 282 Vault unoccupiable without large capital expenditure works 

Floor E Vault 10 Gary Simpson Wilson 135 12/03/2012 11/03/2013 £540.00 £4.00 

Floor E Store 

Void 

Floor F Laundry 174 

Bank Vault Void 480 

Storage Spaces 

3 & 6 

Storage Space 

13 

Storage Space 

14 & 15 

Golley Slater Limited 05/08/2008 N/A £400.00 Tenancy at will, one months mutual option to terminate 

Lynn Dobson T/A Abacus Business 

Services 

01/01/2012 31/12/2012 £144.00 Holding over 

Smith Cole Wright (Newcastle) Limited 17/05/2012 £1.00 Tenancy at will, one months mutual option to terminate 

Storage Space 24 Joseph Miller & Company Limited 02/11/2009 N/A £750.00 Tenancy at will, one months mutual option to terminate 

Storage Space 18 Janet Plater Management Limited 23/03/2004 N/A £150.00 Tenancy at will, one months mutual option to terminate 

Storage Space 22 

Wall Mounted 

Street Lighting 

Void 

City Of Newcastle Upon Tyne 

Sub Total 2,828 £6,605.00 

Total 106,900 £665,368.10 

One months notice to terminate by either side 

Service Charge 

The last three service charge years are as follows: 

Budget 

Actual 

2009 £385,000 £385,043 

2010 £387,000 £349,013 

2011 £387,000 £330,908 

Non Recoverable Costs 

The latest service charge accounts for the building run 

from 25 December 2010 to 24 December 2011 and total 

£330,908 with total non recoverable costs of approximately 

£168,963.48.

Cathedral 

Buildings 

■ WAULT of 4 years to expiry 

and 3 years to break 

■ 48.57% of income is retail and leisure 

■ 27.11% is vacant 

■ Gross Income: £159,957 

■ Non Recoverables: £31,189 

■ Net Income: £128,768 

description 

Cathedral Buildings is a particularly imposing building 

dating from 1905, in the free baroque style, with 

extensive frontage on to Dean Street. The property 

is home to a long established Italian restaurant and 

other retail accommodation on ground floor, with 

office accommodation on the five floors above. 

The building is Grade II listed. 

The office accommodation is of relatively basic 

specification, though does have lift access to all 

floors. Given its extensive frontage and low depth, 

the building does offer excellent levels of natural light. 

This building exhibits the strong potential for change 

of use, with residential, boutique hotel or apart-hotel 

being potential candidates.

CATHEDRAL BUILDINGS - tenancy schedule 

Address Tenant Floor Area 

Sq.Ft. 

N.Int 

Term 

From 

Lease 

To 

Break 

Current 

Rent p.a. £ 

£ 

p.s.f. 

Date of 

Next Review 


Retail 

27/29 Dean 

Street 

Sounds Live (Newcastle) Limited 3,253 01/05/2011 30/04/2021 01/05/16 £30,210.00 £9.29 01/05/2016 Tenant only option to break 

Retail 25 Dean Street Ali Tabet 1,215 04/12/1995 03/12/2015 £14,000.00 £11.52 04/12/2010 Assigned from Houshang Memari 17/02/06 

Retail 

33,35 & 37 

Dean Street 

Offices First Floor 1.1 

Minel Leisure Limited 2,484 02/02/1995 01/02/2016 £32,800.00 £13.20 02/02/2011 

N Davison & G Davison practising as 

Housemans Solicitors 

1,710 25/03/2012 24/03/2017 £12,000.00 £7.02 Mutual OTB anytime after 29/3/12 with 6 months notice 

Offices First Floor 1.2 Architects Design Partnership LLP 2,225 01/04/2008 31/03/2013 £22,250.00 £10.00 

Offices Third Floor 3.1 Void 1,975 

Offices 

Third & Second 

Floors 3.2 & 2.1 

& Basement 

The Environmental Consultancy Limited 5,925 01/04/2010 31/03/2015 01/04/13 £31,717.00 £5.35 Rent increases 1/4/13 to £54,373 

Storerooms 

Offices Fourth Floor 4.1 Void 536 

Offices Fourth Floor 4.3 Void 1,575 

Offices Fourth Floor 4.4 Robinson Landscape Design Limited 520 11/10/2011 10/10/2012 £4,680.00 £9.00 



Offices Fifth Floor 5.1 

Charles Taylor Administration 

Services Limited 

Offices Fifth Floor 5.2 Void 495 

Offices Fifth Floor 5.3 Void 1,466 

1,222 25/12/2005 24/12/2015 £11,000.00 £9.00 

Car Park 1 space Sadler Brown Limited 24/06/2010 23/06/2012 £1,300.00 Holding over and notice served on lease 

Car Park 14 spaces Void 

Total 25,454 £159,957.00 



Budget 

Actual 

2009 £77,000 £76,915 

2010 £76,000 £67,842 

2011 £73,500 

2012 £84,000 


The latest budgeted service charge accounts for the building 

run from 1st January to 31st December and total £84,000 

with total non recoverable costs of approximately £31,189.

St Nicholas 

Chambers 

■ WAULT of 16.22 years to expiry 

and 14.57 to break 

■ 84.18% of the income is retail or leisure 

■ 45% of the building is vacant 

■ Gross income: £144,887 

■ Non recoverables: £67,572 

■ Net Income: £77,315 

description 

St Nicholas Chambers was constructed in 1881 

and provides a mix of office, retail, restaurant and 

bar accommodation over six levels. The property is 

within a conservation area, but is not listed. 

The upper floors are arranged as individual office 

suites, providing predominantly cellular office 

accommodation of a relatively basic standard, but 

benefit from lift access. 

The property is an attractive building in a reasonable 

central office pitch, but also has potential to change 

of use of the upper floors to residential or hotel, 

subject to the necessary consents.

St Nicholas Chambers - tenancy schedule 

Address Tenant Floor Area 

Sq.Ft. 

Term 

From 

Lease 

To 

Break 

Current 

Rent p.a. £ 

£ 

p.s.f. 

Date of 

Next Review 


Lower Ground/Basement 

Floor, The Side 

Enhancement One Limited 2,366 08/03/2010 07/03/2025 17/03/2013 £20,000.00 08/03/2015 Rent increased to £25,000 on 08/03/13 

Lower Ground Floor, 

and Cellar, The Side 

Unique Pub Properties Limited 2,202 02/01/1988 01/01/2038 £80,000.00 £36.33 02/01/13 Privity of Contract with Bass Holdings plc 

Ground Floor Suites 1 - 5 Void 1,584 

Ground Floor Suites 6 - 7 Skullduggeri Limited 1,675 25/11/2010 06/12/2012 £22,000.00 £13.13 Rent Guarantee - Alison Dalgleish and Emma Clarkson. 

First Floor Suites 1, 2, 4, 4a, 

7 & 8 

Void 1,155 

First Floor Suites 5 & 6 Void 392 

First Floor Suites 9 - 13 Absolute Image Limited 1,580 01/10/2007 01/08/2014 £21,000.00 £13.29 

Second Floor Suites 1 - 4 Void 822 

Second Floor Suites 9, 10, 

10a, 10b 

Void 880 

Second Floor Suites 11 - 13 Void 687 

Third Floor Suites 9 - 10b Void 849 

Third Floor Suites 11 - 14 Void 555 

Caretakers Flat Occupied by Edward Money (Caretaker) 630 £1,887.00 £2.99 Caretakers Flat (Part of salary package) paid by Service Charges 

Total 15,377 £144,887.00 



Budget 

Actual 

2009/2010 £56,850 £37,790 

2010/2011 £48,000 £42,093 

2011/2012 £42,800 


The latest budgeted service charge accounts for the building 

run from 6th April to 5th April and totals £42,800 with total 

non recoverable costs of approximately £28,230. 

Empty rates are running at £85,900 with rates payable 

equating to approximately £39,342.

17 - 21 Dean Street 

■ 71% of the income generated from residential 

with all tenants holding over 

■ 1 vacant residential unit 

■ 29% of the income is retail with over 7 years unexpired 

description 

This property, whilst adjacent to Milburn House, provides a 

physically distinct property providing retail accommodation 

on ground floor and basement, with seven apartments above. 

The building is Grade II listed. 

The apartments, of which three are two bed and four are one bed, 

are nearly fully let at rents of £600 - £900 pcm. 

Flats 17 A/B/C are all accessed from Dean Street and situated over 

first, second and third floors. Flats 21 A/B/C/D are all accessed 

from Amen Corner to the rear of Dean Street and situated over first, 

second, third and fourth floors. 


The day to day management is undertaken by the care 

taker at St Nicholas Chambers therefore the minimal cost 

falls within the service charge of St Nicholas Chambers. 

Address Tenant Area Lease Start Lease Expiry Rent PA Comments 

Ground Floor / Basement Lydia’s House 1,482 08/01/2010 07/01/2020 £20,000.00 Rent increase 8/1/15 to £21,000 

Apartment 17A (1 Bedroom) Individual 532 03/08/2011 02/02/2012 £7,200.00 Rental Deposit Paid. Holding over month to month 

Apartment 17B (1 Bedroom) Individual 428 08/08/2011 07/08/2012 £7,200.00 Rental Deposit Paid 

Apartment 17C (2 Bedroom) Vacant 418 

Apartment 21A (2 Bedroom) Individual 638 26/09/2011 25/05/2012 £9,600.00 

Apartment 21B (1 Bedroom) Individual 578 02/06/2010 01/12/2010 £7,200.00 Rental Deposit Paid. Holding over month to month 

Apartment 21C (1 Bedroom) Individual 614 03/01/2009 02/07/2010 £7,200.00 Rental Deposit Paid. Holding over month to month 

Apartment 21D (2 Bedroom) Individual 968 02/02/2011 01/02/2012 £10,800.00 Rental Deposit Paid. Holding over month to month 

Total 5,658 £69,200.00

Market Commentary 

The city centre office market in Newcastle is physically 

constrained by both tight boundaries and the proportion of 

historic buildings. Partly as a consequence of this and the 

conversion of a number of secondary buildings to hotel use, 

the vacancy rate is one of the lowest in the country. Rents have 

held up well, with recent lettings of Grade A space of 11,360 

sq ft to Beachcroft at £21.50 psf and good Grade B lettings 

at Maybrook and Gainsborough Houses at £15 - £16 psf, all 

reflecting levels only marginally off the top of the market. 

As a result of a relative undersupply of hotel rooms, the city 

enjoys one of the best occupancy rates (75%+) and RevPar’s 

(£50+) in the regions. A number of operators have taken 

advantage of the valuable Business Premises Renovation 

Allowances (BPRA) to convert buildings and there remain 

requirements and opportunities in this sector. 

VAT 

The property will be subject to VAT, although we anticipate 

the sale will be treated as a Transfer of a Going concern. 

Tenure 

Freehold 

DATAROOM 

A dataroom is available, access to which can be granted 

on request.

Residential 

Proposal 

Offers are sought in excess of £6,500,000 (Six Million Five Hundred Thousand Pounds) subject to contract and VAT. 

A purchase at this level would reflect the following:- 

Net Initial Yield 15.11% Net Net Initial Yield 11.22% Capital Value £42.38 

Whilst consideration will be given to offers on the individual parts, it is the vendor’s preference to sell as a whole. 

For further information or to make arrangements for viewing please contact: 

Commercial 

Allsop 

David Hammond 

020 7543 6721 

david.hammond@allsop.co.uk 

www.allsop.co.uk 


Guy Scott Plummer 

020 7543 6726 

guy.scott-plummer@allsop.co.uk 

Residential 


James Wilson 

0113 236 6679 

james.wilson@allsop.co.uk 

DTZ 

Richard Turner 

0191 223 5720 

richard.turner@dtz.com 

DTZ 

Chris Donabie 

0191 223 5809 

chris.donabie@dtz.com 

020 7437 6977 

www.dtz.com 

Misrepresentation Act: 1. Allsop LLP and DTZ on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop and DTZ 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 or DTZ nor any of their 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. DTZ is the trading name of DTZ Debenham Tie Leung Limited. 10.12

Download - Allsop

Create successful ePaper yourself

Delete template?

Save as template?