Exchange Buildings sold for £14.5m
The Newcastle Quayside asset has been acquired by French SCPI fund Iroko Zen, in an off-market deal brokered by Knight Frank.
The buildings consist of 9-15 Lombard Street, 9 Quayside, 16 Queen Street, and 6-10 King Street, and are let to tenants Premier Inn, Stonegate Pub, and Spirit Group Retail.
Built around 1860, the property brings in a rent of around £1.2m per year, with 75% of that coming from Premier Inn.
The hotel’s rent terms are reviewed every five years and linked to the Consumer Prices Index.
The freehold sale itself represents a net initial yield of 7.42% and was purchased from United Property Services.
Dickon Wood, partner at Knight Frank in Newcastle, said: “This acquisition highlights continued foreign investor appetite for UK real estate in the regional cities.
“It reflects a growing trend among investors to diversify away from saturated urban centres and seek higher returns.”
French SCPI funds are a real estate investment vehicle that allows individuals to invest in properties that are handled by a professional management company.
