Palace Capital, a UK property investment company, have acquired SM Newcastle in an investment deal worth £20million. SM Newcastle own a number of freehold assets in the North East, including Mcleer and Rushe’s 1,2 and 3 St James Gate and the adjoining Jurys Inn Hotel, in Newcastle City Centre.
1 and 2 St James Gate combined provide over 140,000sq ft of office space, with tenants including the National Lottery Charities Board, Serco Group PLC and most recently, Eldon Insurance. Eldon Insurance acquired over 21,000sq ft in the largest city centre letting of the year so far, in a deal completed by our North East office agent, Robert Patterson.
Robert Patterson commented, “This deal further signifies the strength of the market and the potential that we have in the North East to attract further investment. Since our involvement with the development we have continued to see high levels of interest and we are delighted to have secured this sale. The total income from all the properties involved in the deal is circa £1.8 million per year which, after costs, produces a net initial yield of 8.6%.”
Our North East agency team acted on behalf McAleer and Rushe, alongside Steerforth Partners.