Lloyds Court & 52-60 Grey Street

Newcastle upon Tyne, Tyne and Wear NE1 6AF


A rare opportunity to acquire a substantial prime city centre office and leisure investment.
  • Located on Grey Street, at the heart of Newcastle's traditional office core and prime leisure pitch.
  • Comprehensively redeveloped behind the existing Georgian façade providing flexible modern workspace extending to 46,960 sq ft.
  • Grade II* listed, therefore benefitting from nil empty rates.
  • Passing rent of £1,012,679.60 per annum.
  • Let to a strong and diversified tenant line-up including Northern Electric plc, Northern Recruitment Group, Nigel Wright Consultancy Limited and Sir John Fitzgerald Limited.
  • Modest passing rental tone for what is the best office building on Grey Street.
  • Significant asset management potential through refurbishment, lease renewals and re-letting of vacant suite.
  • WAULT of 7.75 years to expiry and 6.90 years to break.
  • We have been instructed to seek offers in excess of £13,600,000 (Thirteen Million, Six Hundred Thousand Pounds) for our client's freehold interest.
  • A purchase at this level reflects an attractive NIY of 6.98% and a capital value of £290 per sq ft after deducting standard purchaser's costs at 6.723%.


Newcastle upon Tyne is the commercial and administrative capital of the North East with a population of approximately 280,000 people (census 2011) extending to approximately 1.1 million people across the wider North Tyneside conurbation, making it the 7th largest in the UK. Newcastle is the largest retailing, leisure and office centre in the North East and has an international draw as a business, education and tourism centre. Major occupiers in the city include BSKYB, Sage Group, Barclays Bank and Npower.

Newcastle is also a major public-sector hub, not just for local and regional government, but also for national government operations, most notably the Department for Work and Pensions and HM Revenue & Customs.

Home to two leading universities, Newcastle and Northumbria, the city attracts over 55,000 students annually from the UK and 136 countries around the world. Newcastle University is a member of the prestigious Russell Group comprising the leading 24 universities in the country.

The city has an extensive primary catchment shopping population of 1.5 million people, and a booming license and leisure market which has seen over 80 new bars and restaurants open in the last 4 years alone, serving some 2 million leisure visitors to the city each year.

Newcastle upon Tyne is situated approximately 286 miles north of London and 105 miles south of Edinburgh. The city is well connected to the wider national road network via the A1(M) and A19. Grey Street is well positioned within the city, with almost immediate access to the A167 central motorway, which connects the city centre to the main arterial routes north and south.

The city is a major transport hub and key stop on the East Coast mainline, with Newcastle having direct rail services to London King's Cross in 2 hours 50 minutes and Edinburgh within 1 hour 30 minutes. Newcastle Central station is also the main interchange for the Tyne and Wear Metro, the rail network which runs throughout Tyneside. The Tyne and Wear Metro supports 60 stations throughout Tyne and Wear, extending as far as Newcastle International Airport to the east and Sunderland to the south east. The nearest Metro station to Lloyds Court and 52-60 Grey Street is Monument, a three-minute walk north.

Newcastle International Airport is situated 7 miles north west of the city centre and serves in excess of 4.8 million passengers annually to 80 destinations worldwide. The airport operates flights via 18 scheduled airlines including Emirates, British Airways, Air France, Easyjet and Flybe. Newcastle International is the leading airport in the North East, benefitting from regular flights throughout the UK, European and international destinations.


Grey Street is widely regarded as one of the finest streets in Europe and forms part of the wider Grainger Town development, which dates from the 1830s. Grey Street has long been regarded as the heart of Newcastle's traditional office core, with many buildings having undergone extensive redevelopment behind the existing facades to provide modern flexible office accommodation. The street remains popular with occupiers attracted by both the wide range of amenities and excellent transport links.

Grey Street has evolved over recent years to become the prime upmarket leisure and dining scene for Newcastle upon Tyne. Home to the iconic Theatre Royal, the street links the Quayside to the south, to Greys Monument and Intu Eldon Square Shopping Centre to the north. The street is home to many popular restaurants and bars, including national multiples such as Zizzi's, The Living Room and Browns, to local and reginal occupiers such as Bar Luga and Decantus. As the street has grown in popularity, the area has seen a regeneration of side streets leading onto Grey Street, such as Highbridge and Shakespeare Street, attracting international and local occupiers ranging from Motel One, to local restaurants, bars and shops.


The subject property comprises two adjoining assets, Lloyds Court and 52-60 Grey Street, which together form a substantial Grade II* listed office and leisure holding occupying a prime position on one of Europe's finest streets. Both buildings were originally constructed in the 1830s, with each subsequently redeveloped behind the façade, 52-60 in the late 1990s and Lloyds Court (62-78) in 2002. Both buildings feature imposing Grade II* listed sandstone façades synonymous with Grey Street.

Lloyds Court comprises a five-storey mixed use building set over basement, ground and three upper floors. The offices are accessed via Grey Street into an impressive full height glazed reception including a feature staircase and lift lobby. Each floor is fitted out to a Grade A specification including raised access floors, suspended ceilings, dedicated security access to each suite, 2 x 8 person passenger lifts, W/Cs on each floor and secure basement car parking for 16 cars. The ground floor comprises retail and leisure units each with dedicated access. Las Iguanas have amalgamated and occupy two units under their lease at 64-74 and trade from both basement and ground floor levels, whilst Sk:n occupy and trade from the ground floor of 76 Grey Street with ancillary storage at basement level.

52-60 Grey Street comprises a five-storey mixed use building currently arranged as a public house and office suite at ground floor level and office accommodation on the three upper floors. Internally, the office accommodation is of a modern specification, including raised floors and comfort cooling, with dedicated access from Grey Street leading into a manned reception with lift lobby and 8 person passenger lift. The ground floor office accommodation, formerly a retail unit, has its own dedicated access onto Grey Street as well as benefitting from an internal access linking to both the building reception, the main stairwell, fire escape and secondary access to the rear. The building benefits from 11 secure onsite parking spaces accessed from the rear via Market Lane.


Both properties are held Freehold. Full title information is available upon request.


A Tenancy Schedule can be found below:

Covenant Information

Sir John Fitzgerald Limited
Company Number: 00214158
Sit John Fitzgerald is a Newcastle headquartered hospitality company with a portfolio of 20 pubs and restaurants through the North East. The company employs circa 500 employees.
Company website: http://sjf.co.uk/

Northern Recruitment Group Limited Company Number: 01756216
Northern Recruitment Group is a Newcastle based recruitment and human resources firm which was incorporated in 1983. NRG have over 40 years' experience in traditional recruitment alongside providing HR consultancy services, workforce management and project management of workforce recruitment and employs 85 members of staff.
Company website: https://www.nrgplc.com/

Las Iguanas Limited
Company Number: 02479566
Las Iguanas Limited is part of the Casual Dining Group, one of the UK's largest dining companies with 300 restaurants UK wide. Las Iguanas founded its first restaurant in Bristol in 1991 and now operates from 53 restaurants throughout the UK serving South American cuisine. As of 2017, Las Iguanas Limited employs approximately 1,619 people.
Company website: https://www.iguanas.co.uk/

Lasercare Clinics (Harrogate) Limited
Company Number: 02545572
Lasercare Clinics, trading as Sk:n Clinics, is the UK's leading skincare specialist having treated nearly 2 million customers from their 49 clinics UK wide. Sk:n provides treatments ranging from laser hair removal, dermatology, hair transplants, anti-aging injections and fillers and tattoo removal administrated by doctors, dermatologists, nurses and trained skin practitioners. As of 2017, Lasercare Clinics employ over 500 employees.
Company website: https://www.sknclinics.co.uk/

Nigel Wright Consultancy Limited
Company Number: 03729582
Nigel Wright Group is a leading specialist recruitment agency in the North East specialising in consumer sector & FMGC recruitment. Nigel Wright operates from 13 offices throughout Europe employing 69 people.
Company website: https://www.nigelwright.com/

Northern Electric plc
Company Number: 02366942
More commonly referred to as Northern Powergrid, Northern Electric ensures electricity for 8 million people throughout the North East and Yorkshire. Northern Powergrid's network extends to 3.9 million homes, through 63,000 substations with 60,000 miles of overground cables. The company employs circa 1,300 during 2017.
Company website: http://www.northernpowergrid.com/

For further information and financial details of the tenants, please refer to the marketing brochure.


The property has been elected for VAT and therefore it is anticipated the sale will be treated as TOGC.


All EPCs and recommendation reports are available upon request.

Service Charge

The 2018 budget service charge reflects £1.40 psf for the retail and leisure accommodation and £8.76 psf for the Lloyds Court office accommodation (£5.90 psf excluding one off repairs to the chillers). The office accommodation at 52-60 Grey Street is excluded from the service charge as it is covered under the tenant's FRI lease obligations. Further information is available upon request.

Market Commentary

For information, please see the Marketing Brochure.

Asset Management Initiatives

  • Explore potential lease re-gear or extension with Northern Recruitment Group.
  • Take back part of whole of 52-60 Grey Street, and either sell separately to owner occupiers or refurbish and significantly move forward rental tone.
  • Convert ground floor office space of 52-60 Grey Street back to retail/leisure unit and potentially link into building reception.
  • Progress the ongoing lease renewal with Northern Electric and establish new rental tone for what is considered the best suite in Lloyds Court.
  • Explore removal of the break option with Nigel Wright.
  • Consider light refurbishment of the common areas of Lloyds Court to support both letting and rental growth prospects.
  • Instigate upcoming rent review on Fitzgeralds which is passing off a low £29.62 psf ground floor rate.
  • Proposal

    We are instructed to seek offers in excess of £13,600,000 (Thirteen Million, Six Hundred Thousand Pounds) reflecting a NIY of 6.98% after purchaser's costs of 6.723%. A purchase at this level reflects a capital value of £290 per sq ft.

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