Maybrook House, Grainger Street

Newcastle upon Tyne NE1 5JE


  • Multi let office and retail investment occupying a key city centre location in the immediate vicinity of Newcastle Central Station
  • Maybrook House comprises 3,711 sq m (39,945 sq ft) of modern office accommodation over five floors in addition to 3 fully let retail units
  • Fully refurbished office accommodation and common parts
  • Weighted unexpired lease term of 5.3 years to expiry and 3.8 to break
  • A strong tenant line-up including Places for People and Thompsons Solicitors
  • Passing rent of £592,019 per annum
  • We are instructed to seek offers in excess of £6,400,000 (Six Million, Four Hundred Thousand Pounds) which reflects a net initial yield of 8.67% after deducting purchaser's costs of 6.63%


Newcastle upon Tyne is the commercial and administrative capital of the North East with a population of approximately 280,000 people [census 2011] and forms part of the wider Tyneside conurbation with a total population in the region of 1.1 million people, making it the 7th largest in the UK. Located approximately 286 miles north of London and 105 miles south of Edinburgh, the city is well connected to the wider road network with the A1 approximately 2 miles to the west and the A19, 7 miles to the east.

The city is well served by public transport with Newcastle Central an established station on the East Coast Mainline with connections to London King's Cross in 2 hours and 40 minutes and Edinburgh in 1 hour 30 minutes. Newcastle Central Station is also the main interchange for the Tyne & Wear Metro, the rail network which runs throughout Tyneside. The network supports 60 stations throughout Tyne and Wear extending as far as Newcastle Airport, 6 miles to the north west and Sunderland to the south east. Newcastle International Airport provides daily scheduled flights to both domestic and international locations.

Newcastle upon Tyne is home to two leading universities. Newcastle and Northumbria Universities attract in excess of 55,000 students from both the UK and 136 countries abroad. Newcastle University is a member of the Russell Group comprising the leading 24 universities in the country.


Maybrook House is prominently located on Grainger Street within Grainger town, which forms the heart of Newcastle city centre. 40% of the buildings within Grainger Town are Grade I or Grade II* listed, emphasising the significance of the architecture. The property is situated to the south end of Grainger Street, a two minute walk from the retail core and in close proximity to the transport hub of Central Station. This area in particular has seen significant investment mainly though NE1 and Network Rail's refurbishment of Central Station, doubling the size of retailing and leisure provisions in and around the Station.

Investment and Development

Newcastle has seen extensive regional and inward investment in recent years delivering a number of significant schemes throughout the city.

Central Station
Newcastle Central Station has recently seen a £24.5m combined regeneration investment between NE1, Network Rail, Newcastle Council and Virgin East Coast, comprising a redevelopment of the portico entrance creating a new pedestrianised zone and a significant extension of the retail provision, attracting occupiers such as M&S, Boots, Paperchase, UGOT and Caffè Nero.

The Stephenson Quarter
An extensive 11-acre site in the heart of Newcastle city centre, phase one has recently completed comprising the Crowne Plaza Hotel, The Rocket, a 35,000 sq ft grade A office building and a 24-hour 360-space multi-storey car park. Further phases include residential and office accommodation, in addition to leisure and retail amenities.

Science Central
A 24 acre landmark development for science and business, Science Central has recently secured Legal and General as an investment partner with an initial investment fund of £65 million into the site creating 2,000 jobs with the aim of unlocking the future potential of the site.

Intu Eldon Square
A multi million pound investment at Intu Eldon Square, Newcastle's main shopping centre. Recent development includes the new main entrance from Northumberland Street and the £25m development at Greys Quarter due to open in October 2016, featuring 20 new restaurants and bars.


Maybrook House comprises a mixed use building constructed in the 1970s, spread over basement, ground and 5 upper floors. The ground floor comprises three fully let retail units accessed via Grainger Street whilst the five upper floors comprise 3,711 sq m (39,945 sq ft) of modern, open plan office accommodation. The vendor undertook a comprehensive refurbishment programme of the common areas in 2010 along with a refurbishment of the office accommodation on a floor-by-floor basis.

The office accommodation benefits from the following specification:

  • Dedicated ground floor reception
  • Suspended ceilings
  • LG7 compatible recessed lighting
  • VRF air-conditioning
  • Shower facilities
  • 2 x 10-person passenger lifts


We understand the main body of the property is held Freehold whilst there is a small parcel of land to the rear held on a 999 year lease from 1 September 2016 at a peppercorn without review.


The property is let in accordance with the tenancy schedule in the link below.

Covenant Information

Further information can be found in the marketing brochure.


The property has been elected for VAT. It is proposed the sale be treated as a transfer of a going concern (TOGC).

Car Parking

Maybrook House benefits from 9 car parking spaces to the rear of the building, of which six spaces are demised to Northstar Ventures, two to Places for People and one to the building manager. Places for People are demised a further 6 spaces through their lease which the landlord has fulfilled at the nearby Hotel Indigo.

The landlord also provides 15 spaces for Thompsons Solicitors in the Hotel Indigo car park on a five year licence from 30.10.2015. Income from this is currently £18,250 per annum which is to be reviewed on the 30th October 2016 and annually thereafter in line with RPI. The spaces are held on a 5-year licence from 30.10.2015 at Hotel Indigo at a current rent of £21,250 which is uplifted annually on the 30th October by 5%. Both licences have mutual termination provisions on 12 months' notice.

Service Charge

The property is managed and operated under a service charge covering on-site staffing, building services, cleaning of common parts, security and building maintenance. The service charge budget is currently operating at a competitive figure in the region of £4.50 psf for the office accommodation. There are four tenants with service charge caps, of which two have exceeded the cap, creating a deficit for 2016/2017 of £7,311.

Service charge accounts can be provided upon request.


Maybrook House has an Energy Performance Certificate Rating of D (86). A full copy of the EPC certificate and recommendation report is available upon request.

Purchase Rationale

  • Prominently located close to the major transport hub of Newcastle Central Station, benefitting from excellent transport links and amenities
  • The vendor undertook a refurbishment programme from 2010 limiting the need for capital expenditure moving forward
  • Substantial M&E renewal undertaken in circa 2007
  • Low rental tone providing strong growth prospects in a fundamentally undersupplied market
  • Asset management angles through regearing current leases and letting the vacant units


We are instructed to seek offers in excess of £6,400,000 (Six Million, Four Hundred Thousand Pounds) subject to contract and exclusive of VAT for our client's freehold interest. A purchase at this price reflects a net initial yield of 8.67% after deducting purchaser's costs of 6.63%.

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