Landmark Newcastle Quayside bar the Pitcher and Piano is on the market for investors at £6.6m.
The popular glass-fronted pub and restaurant, which was originally commissioned in 1995 by the Tyne and Wear Development Corporation and Amec Developments, is currently leased to Wolverhampton-based brewer and operator Marston’s and the agreement will be renewed for another 35 years.
The pub, on the banks of the Tyne, is one of 20 UK Pitcher & Pianos in the Marston Group’s portfolio and generates an annual rental income of around £350,000.
Los Angeles-headquartered property firm CBRE, which has around 37,000 staff at more than 300 offices globally, has been instructed to sell the property which had a £350,000 refurbishment in March last year.
The reason for sale, according to CBRE, is capital creation, so the firm can generate more monies which can then be ploughed back into the business to help with expansion plans across its UK sites.
The Newcastle bar attracts high levels of year-round footfall from neighbouring attractions such as the Baltic and Sage, hotels and nearby commercial occupiers.
The two-storey property is around 10,433sq ft, with an additional external seating area of 2,000sq ft.
Marston’s currently employs around 12,000 people and has an estate of about 2,150 pubs under brands, including Pitcher and Piano and Tavern Tables. Operations will remain the same throughout the sale.
Andrew Watt, senior director of CBRE’s National Specialist Markets team, said: “This represents a unique opportunity for an investor to acquire a high-profile investment with strong, long-term rental returns.
“The whole Quayside area of Newcastle has undergone a renaissance of regeneration and its popularity continues to rise.
“The Pitcher and Piano is an established leisure destination and we anticipate very high levels of interest; £6.625m for the investment, represents a net initial yield of 5%.”
The news comes after the former Fever bar on the Quayside wassold through Newcastle property agents Christie & Co and is nowtrading as the Bridge Inn.
Meanwhile, plans were unveiled last year for a budget hotel to breathe new life back into historic Proctor House, within the heart of the Quayside’s conservation area.
Mark Worley of Christie & Co, said: “There is huge interest in the Quayside once again and the sale of both Fever and Proctor House is very encouraging for other licensed owners and tenants on the Quayside as well as the pub industry in Newcastle generally.”