A multi-million pound landmark office building in the heart of Newcastle’s Grainger Town has been sold to a private investor.
St Nicholas Building first came to market in 1997 following a £10m redevelopment project to create prime Grade A office space behind a historic facade.
ES Group in Newcastle has confirmed that a sale has been completed on the grand Victorian building, which had an asking price of £13m.
Bill Lynn, director and head of agency and investment at ES Group’s Newcastle office, acted alongside a team at DTZ in the sale, which he believes confirms renewed investment confidence within the North East.
The development provides 64,175sqft of accommodation to seven tenants over five floors, with notable tenants including American Express, Thompsons Solicitor and the National Audit Office, with annual income topping £1.174m.
Mr Lynn said: “I think a sale of this nature, of such a prominent building, really underpins the general feeling of improvement in the market in Newcastle. This is a big sale.
“Someone has had the confidence to put a lot of money into it, on the expectation of an improving market, so I think it marks a reflection of the fact that we are looking at a stronger market.”
The building was originally designed by William Parnell, who was also behind the Tyne Theatre on Westgate Road.
St Nicholas Building completed between 1859 and 1860 and he himself worked there for a year before moving to Collingwood Chambers, leaving the premises to insurance clerks and others in similar pursuits.
Architect Alan J Smith’s practice took on the task of converting the building for more modern purposes on behalf of London property magnate Harry Hyams in the 1990s, completing the project in 1997 with help from an urban development grant.