Property

Under Offer
Investment Residential and Development

Residential Investment Opportunity – Westgate House, 252-258 Westgate Road, Newcastle upon Tyne, NE4 6AQ

Fully let 34 double bedrooms producing £148,070 pa increasing to 38 bedrooms and £179,660 pa by September 2021, following completion of further 4x-1 bedroom garden flats.

Newcastle is home to two leading universities; the University of Newcastle & Northumbria University, both of which have city centre campuses.

Offers in excess of £2,400,000 are invited for the freehold interest of the property. A sale at this level reflects a yield of 7.04% assuming standard purchasers costs of 6.36% and only £63,158 per bed space.

LOCATION

Newcastle upon Tyne is the commercial capital of the north east of England and 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. It also links with Carlisle and Cumbria to the west via the A69 trunk road. Newcastle Central Railway Station in the city centre, a short walk from the property, 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 benefit 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.

TWO UNIVERSITY CITY

Newcastle is home to two leading universities; the University of Newcastle is a member of the Russell Group (a leading group of 24 of the country’s most highly regarded universities) attracting approximately 18,000 students from 100 countries. Northumbria University also has a city centre campus and attracts approximately 33,000 students from over 125 countries. Both universities have extended their city centre campuses in recent years. 

Newcastle and Northumbria Universities only provide accommodation for first year students, which comprise approximately 25% of the student population in the city. With a student population of over 50,000 in Newcastle upon Tyne, good accommodation in desirable areas is in high demand.

NEWCASTLE HELIX

Newcastle Helix is a 24-acre city-centre site, the former location of the Newcastle Brewery. The site was purchased by the Science City consortium, and cleared for development. The masterplan shows the site being developed by 2021 into, effectively, a combination of a Science Park, an inner-city ecovillage, and an urban regeneration project. It will house university buildings concentrating on the challenge of sustainability, a state-of-the-art sustainable housing development, an energy centre, and a mixed development allowing for colocation of researchers with companies working within the business of sustainability. A current high-profile sustainability project on the site is the drilling of a 2km-deep borehole to tap geothermal energy. The first building on the Science Central complex was the Newcastle University Business School, a £29m development which was taken into use in August 2011. Following that was a Gateway Building, to house incubation
facilities and CPD activities. 

Newcastle Helix now incorporates a number of state of the art, flagship offices, lecture theatres and laboratory space including The Biosphere, The Lumen, Newcastle University Urban Sciences Building, The Frederick Douglas Centre, The Spark as well as the UK National Innovation Centres for Ageing and Data. 

More information can be found here: https://newcastlehelix.com/about 

DESCRIPTION

The property fronting Westgate Road comprises 4 mid-terraced 4-storey buildings, constructed c.1900. The main walls are of brick construction and the roof is pitched with a slate covering. There are four small front gardens to each of the terraced properties as well as yards to the rear.  The properties contain 7 HMO compliant flats with a total of 34 bedrooms. Planning has recently been granted to create a further 4x-1 bedroom garden flats which are in the process of being constructed with an estimated completion date of September 2021.

ACCOMMODATION

Address Sq m Sq ft
1 26 279.86
2 78 839.59
3 123 1,324
4 35 376.74
5 86 925.70
6 127 1,367
7 26 279.86
8 188 2,023.63
9 26 278.86
10 79 850.36
11 110 1,184
TOTAL 904 9,371

ACCOMMODATION

The four buildings provide a total floor area of approximately 904 sq m / 9,731 sq ft. An example of the apartment layouts are as follows. Full plans can be provided upon request.

RENTAL INCOME

We understand the properties are currently generating a gross rental income of £148,070 per annum and it is anticipated that the rents for the academic year 2021/2022 with be £179,660 per annum once the garden flats have been completed. The rents are summarized in the schedules below:

2020/2021

Property AddressTotal BedroomsRent pppwRent pa
11n/a
23£80.00£12,480
35£82.50£21,450
41n/a
53£85.00£14,360
66£85.00£26,520
71n/a
88£85.00£35,360
91n/a
103£80.00£12,480
116£85.00£26,520
Total38 £148,070

Low rents based on only £80-£85 pppw

We suspect that as development to the rear of the building at Newcastle Helix continues, rents will climb to those being achieved in Newcastle city centre.

2021 / 2022

Property AddressTotal BedroomsRent pppwRent pa
11£150.00£7,800
23£82.50£12,870
35£82.50£21,450
41£150.00£7,800
53£85.00£13,260
66£85.00£26,520
71£150.00£7,800
88£85.00£35,360
91£150.00£7,800
103£80.00£12,480
116£85.00£26,520
Total38 £179,660

EPC

Apartment 2 – C

Apartment 3 – C

Apartment 5 – C

Apartment 6 – E

Apartment 8 – C

Apartment 10 – E

Apartment 11 – E

The EPCs for apartments 1, 4, 7 and 9 will be commissioned as soon as construction has been completed.

VAT

We understand the property is not elected for tax

LEGAL COSTS

Each party is to be responsible for their own costs incurred in the transaction.

ANTI-MONEY LAUNDERING REGULATIONS

In accordance with anti-money laundering regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser.

PROPOSAL

Offers in excess of £2,400,000 are invited for the freehold interest of the property. A sale at this level reflects a yield of 7.04% assuming standard purchasers costs of 6.36% and only £63,158 per bed space.

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