Prime office complex the Regent Centre has been acquired by an investment firm as part of a deal worth £296m.
Kennedy Wilson Europe Real Estate Plc – a London Stock Exchange listed company that invests primarily in European real estate and real estate loans - has acquired the 320,000sqft centre in Gosforth, Newcastle, as part of its acquisition of the Fordgate Jupiter portfolio.
The buy-out follows previous purchases by Kennedy Wilson across Newcastle, including Vantage Point at Balliol Business Park.
In February the investment firm successfully raised around £1bn of equity in an initial public offering on the London Stock Exchange, paving the way for it to focus on a strong pipeline of deals across the UK, Spain and Ireland.
Now it has officially completed the acquisition of the Fordgate Jupiter Portfolio, which includes 21 assets across the UK, including nine offices, two mixed-use developments, five car showrooms, three leisure complexes, one retail complex and one warehouse.
Together with Regent Centre the entire portfolio generates around £25m in rent a year.
A Kennedy Wilson spokesman said: “The Regent Centre is a widely-known and highly regarded office location with outstanding connectivity. In the last two years it has attracted over 30 lettings which is a reflection of the high occupational demand in the local area.”
Tim Evans, proprietary partner at Knight Frank and joint agent with BNP Paribas Real Estate on Regent Centre, welcomed the deal.
He said: “This investment is good news for the office market and is a clear indication that activity is returning to the office sector.
“Regent Centre has been one of the North East’s most important office locations for many years, attracting during that time some of the region’s best-known and most successful companies. One of the success factors of Regent Centre is its proximity to Newcastle International Airport.
“The presence of Emirates, the award-winning Dubai-based carrier, has given a major boost to travel and trade in the region, establishing Newcastle on the long haul map of the world and further emphasising the exceptional locational qualities of Regent Centre.”