City Centre Student Residential Investment entirely let to Newcastle University until September 2019
Comprising 56 bedrooms, including 8 studio apartments
Located in the heart of Newcastle City Centre very close to both Newcastle and Northumbria Universities
Situated in a vibrant city centre location close to Eldon Square Shopping Centre, China Town and The Gate providing an excellent mix of bars and restaurants
Rental income of £309,046.70 per annum with a projected income of £349,350 for academic year 2019/2020.
Newcastle upon Tyne is situated approximately 300 miles to the north of London, 100 miles to the south of Edinburgh and 100 miles to the north of Leeds. The city has good communication links, being situated on the main A1(M) connecting London and Edinburgh and also links with Carlisle and Cumbria to the west via the A69 trunk road. Newcastle Central Railway Station in the city centre forms part of the East Coast main line between Edinburgh and London. Newcastle International Airport is located approximately 7 miles to the north west of the city centre and provides daily ﬂights to most major domestic and European destinations.
In addition to over ground rail connections, Newcastle is the only city in England outside of London to beneft from an underground rail network. The Metro has 60 stations across the North East connecting Newcastle City Centre to the wider conurbation including Sunderland, South Shields and Newcastle Airport. Newcastle is one of the fastest growing cities in the UK, with 21,000 new homes and 14,000 new jobs expected over the next 12 years. The city’s population is anticipated to reach over 310,000 by 2030, increasing by 6% from 2016, while the city region population is projected to be 2.75 million by 2030.
The combined urban cores of Gateshead and Newcastle are the key employment area in the North East, and the main driver of the city region growth. The region benefts from high levels of accessibility and connectivity with a national rail service in the city centre as well as the Metro ‘underground’ system with four stations in the city centre alone. In the future, Newcastle will benefit from the North of Tyne devolution deal. Implemented in 2018, the deal will bring
Newcastle, North Tyneside and Northumberland together and is expected to bring an extra £600 million of investment to the region over the next 30 years.
Albion House is located in a prime central position a short walking distance from the Newcastle University Campus and
perfectly located close to Northumbria University Campus. It is on the doorstep of Newcastle University’s state of the art
Business School on Barrack Road and the Science Central Development (the Helix) on St James Boulevard.
The property is also very close to the Royal Victoria Infirmary (RVI Hospital) on Queen Victoria Road as well as Eldon
Square Shopping Centre, China Town and The Gate, providing an excellent mix of shops, bars and restaurants.
Newcastle is seeing a new wave of mixed use city centre regeneration schemes, including the Helix, East Pilgrim Street
and Stephenson Quarter, all of which is enabling the city to expand outward and in turn revitalising the urban core.
The property has been assessed with an Energy Performance Certicate rating of 62 (Band C).
The property is entirely let to University of Newcastle upon Tyne until 11th September 2019 at the passing rent of £309,046.70 per annum. Newcastle University have confrmed that the property has been 100% occupied for the last 5 years.
From 12 September 2019 the property will be taken back under direct management by the vendor, who is in the process of
marketing the apartments for the academic year 2019/2020. It is anticipated that the gross rent will calculate to a total in excess of £350,000 when fully let.
Seeking offers in excess of £4,000,000 (Four Million Pounds) for our client’s freehold interest, reﬂecting a net initial
yield of 7.25% and a net reversionary yield (2019/2020) of 8.20% , assuming purchaser’s costs of 6.54%
ANTI-MONEY LAUNDERING REGULATIONS
In accordance with the Anti-Money Laundering Regulations; two forms of identification and proof of the source of income will be required from the successful purchaser.