A prominent building in Newcastle city centre has been acquired in an £8m deal that could advance the regeneration of a popular area.
Regional property and investment specialists Monument Real Estate has bought the Cathedral Square building that overlooks the Bigg Market and Newcastle Cathedral. The 1970s office block, which covers almost 100,000 sqft, is on the site of Newcastle’s former town hall.
Cathedral Square currently has a number of tenants including a Job Centre, the Revolucion da Cuba bar, Co-op Bank and Photoline print services.
Its purchase by Newcastle-based Monument Real Estate has been assisted by a major institutional fund and a consortium of North East investors.
City centre bosses said the sale offers the opportunity to progress a recent refurbishment of the Bigg Market area backed by money from the Heritage Lottery Fund.
Alex Slack, head of special projects at NE1 Ltd, said: “The sale of Cathedral Square is a fantastic North East-led investment story, giving a new future to a building of major significance in the heart of the city centre.
“Cathedral Square is a big-ticket project that has the potential to transform the area and continue the major regeneration of the Bigg Market. We are excited to see the next chapter of the building unfold.
“Throughout NE1’s Bigg Market regeneration programme there have been numerous potential suitors for Cathedral Square, but we are delighted that the buyers include a consortium of local, North East investors who have a focus, interest, and commitment to the wider city and region not just to the building.”
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Tom Wooldridge, executive director and founder of Monument Real Estate, said: “Cathedral Square occupies a pivotal location on the Bigg Market and its purchase will be transformational for the property and the wider area.
“It is a prime example of how Monument operates, seeking out and capitalising on value-add opportunities in regional real estate. Our local knowledge and understanding of the Bigg Market and Newcastle meant that we recognised the opportunity that Cathedral Square provides, knowledge that was shared by the other North East investors and could be easily communicated to our institutional investor.
“We have watched NE1’s work in the Bigg Market with interest and have seen how private investment and new business growth has followed the transformation of the public realm and the regeneration of the heritage buildings. The wider rejuvenation of the area sparked our interest and enhanced the appeal of the property.
“We are now looking forward to making our contribution to the area’s resurgence in fortunes.”
Mr Wooldridge founded Monument Real Estate in 2016 to offer asset management and structured finance for commercial property investors and developers.
The company works with a network of private equity funds, institutional and local investors, focusing on opportunities in regional real estate that support intensive asset management initiatives.
Muckle and Freedman & Hilmi advised the buyer. Knight Frank, TT&G Partners and Fieldfisher acted on behalf of the vendor.