Newcastle’s luxury shopping complex Monument Mall was bought by billionaire real estate entrepreneurs the Reuben brothers, it has emerged.
London based property agents CWM confirmed the 130,000sqft mall had been sold in a deal which was subject to a confidentiality agreement, blocking the identity of the purchaser and the completed deal value.
Now, however, it has emerged that Motcomb Estates, a vehicle set up on the real estate entrepreneurs’ behalf, swooped for the prime mall, which was sold last month.
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The deal came seven months after going on the market with a £48m price tag - but it has been reported that it sold for around £37m, a significant discount on the asking price and 50% less than its previous owners paid for it.
Aberdeen Standard Investments had snapped it up from previous owners Hammerson for £75m.
The deal secures yet another Tyneside landmark site for the billionaire brothers – who are worth close to £21.5bn according to the most recent Sunday Times Rich List - adding to their plans for the redevelopment of Pilgrim Street.
Within the city, the brothers’ development vehicle Taras Properties is bringing forward the £200m regeneration of the East Pilgrim Street area in several stages over the next eight years, starting with the creating of the office scheme Bank House close to the Swan House roundabout.
The listed Worswick Chambers and 93-101 Pilgrim Street stretch are also set to be turned into bars and restaurants, while plans were recently approved to convert the former fire station into a 60-bedroom hotel.
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The final stages of the project are planned to create a shopping, leisure and new housing scheme at the former Odeon cinema site.
When plans were first revealed two years ago, they showed how Stack Newcastle would eventually be replaced with a curved structure for prime retailers with a rooftop terrace, alongside a second new building containing more shops, with bars and restaurants on the upper storey.
The purchase of the 130,000sqft Monument Mall raises questions on whether the entrepreneurs will want to forge ahead with plans for yet more luxury retail and dining in such close proximity, at a time when retail in general is struggling.
That part of the overall project will, however, form the final stage of the scheme, potentially in several years’ time.
Retail consultant Graham Soult said the deal’s reported value reflects the changing rental values of property during the pandemic, when retail tenants struck new, more realistic deals with landlords.
He said: “It reflects that rents have been trimmed across the board. The historically eye-watering values are coming down, but as a retail asset it is pretty good - it’s fully occupied, with decent brands like TK Maxx that are doing well and a good mix of leisure and retail.
“And that’s thanks to the revamp that was done all those years ago, turning it from an out-dated, inward facing shopping centre into a street-facing success.”
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Mr Soult cast doubt on plans for further luxury shopping to be included in the East Pilgrim development, despite the fact those plans lay far in the future.
He added: “It seems out of kilter with the way we are going.
“I can’t see there being any new retail development in Newcastle outside the confines of the retail core - even the idea of retail that is retail now is questionable.
“Rather than a pop-up use, Stack is the kind of attractive place that people are wanting to go to, although it was conceived as a stop gap.”