22nd November 2018

Citygate, Newcastle

Citygate II is a modern multi-let office in Newcastle city centre. It extends to 63,524 sq. ft. with 70 car parking spaces. It is let to three tenants. EY, UNW and Grainger plc.

PURCHASE

The asset was acquired by Ediston in January 2016 for £18.95 million, reflecting a net initial yield of 6.57%. The property was bought for the Ediston Property Investment Company plc.

ACHIEVEMENTS

  • Restructured the leases held by EY. EY occupied 41,935 sq. ft. across five floors on five leases which were due to expire in March 2022.
  • Ediston signed an agreement with EY to vary all their leases to give an expirey date of 31 December 2027. As part of the deal, the passing rent across these five floors increased by 20%.
  • EY completed refurbishment of their space.
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