Landmark £15.6m Newcastle leisure investment heads to market
A landmark leisure investment in Newcastle upon Tyne has been placed on the market with an asking price of £15,650,000, reflecting a net initial yield of 10%.
Park Place Retail is marketing The Gate on Newgate Street, a 235,288 sq ft purpose-built leisure destination in the city centre anchored by a 12-screen Cineworld cinema and a Bally’s Casino.
Other occupiers at the development include JD Wetherspoon, Nando’s, Cosmo, Escape, Pizza Hut, Lane7, YuMe World, Kiss, TheWonderBar, Mojo, and Game of Throwing.
The property also benefits from a 24-hour, two-storey car park to the rear with 275 spaces.
The Gate is located in close proximity to Newcastle Central Train station, with the surrounding retail provision including Eldon Square Shopping Centre, Grainger Market, and Bigg Market. Next have also recently opened a new 60,000 sq ft flagship store directly opposite, with proposals for a major rooftop entertainment facility above.
Other notable locations nearby include the St James’ Park football stadium and adjacent metro station, as well as Newcastle Helix, a 24-acre hybrid city quarter built for science and technology businesses.
Park Place Retail said there is significant potential opportunity to increase the scheme’s net operating income through the leasing of a 3,793 sq ft vacant unit, as well as asset management and service charge rationalisation.
The Gate was originally developed by Landsec in 2002 to provide an integrated, covered leisure destination for central Newcastle. The current owners acquired the scheme in 2012 and in 2015 and 2016 undertook refurbishment and improvement works spending approximately £4m. These works included improvements to the main entrance façade and foyer areas. In addition, they spent over £500,000 on fire improvement works in 2023.