A Tyneside property company has bought Gosforth Shopping Center in a £9.3million deal – and plans to create new community initiatives in the complex.
Newcastle-based Monument Real Estate has acquired the popular center in an off-market deal to bring it back into local hands for the first time in eight years. The company, which is backed by a consortium of local private investors, says it now wants to work with the community on a number of ideas to grow its brand.
The multi-million pound deal followed a direct approach from Monument to Custodian REIT, which had taken ownership of the center in 2021 when it acquired the whole of Drum REIT. It was previously part of an investment portfolio owned by entrepreneur Graham Wylie, owner of Close House Golf Course and founder of Sage Plc, who sold it in 2014.
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The popular shopping centre, which spans 74,000 square feet with second-floor parking, is based on busy Gosforth Street and all of its 18 retail units are currently occupied, anchored by the 33,000-occupancy Sainsbury’s supermarket square feet. Other tenants include Lloyds Bank, Boots and WHSmith.
Tom Wooldridge, Executive Director and Founder of Monument Real Estate, said: “As the focal point of Gosforth High Street, in one of the region’s most desirable residential areas, we saw an opportunity to secure the center and to improve as a whole. call given very solid references.
“As local asset managers, backed by local co-investors, we are well placed to capitalize on the strength of demographics. We want to grow the brand and appeal of Gosforth Shopping Center by coming up with several new initiatives and working with the community to give the center its own personality and establish points of difference with comparable centres.
Naylors Gavin Black has been appointed property manager and Monument will be retained as asset manager for the mall. Nicola Tiffen and Ben Jackson, from the commercial and corporate property teams of Newcastle law firm Hay & Kilner respectively, acted on behalf of the buyer.
Mr Jackson, Partner at Hay & Kilner, said: “Gosforth Shopping Center is a landmark in the North East retail sector and it is great for us to be able to help put it back between experienced local hands. The acquisition expresses great confidence in the future prospects of this prime retail space, as well as the wider region, and we look forward to seeing Monument Real Estate’s exciting plans for its development implemented.
In 2021, Monument led the acquisition of Cathedral Square, a mixed-use building in central Newcastle, with the backing of private equity and local investors. Earlier this year, the company won permission to create 35 residential apartments in vacant 2 Cathedral Square offices and is currently working to secure a planning agreement to alter the design of the current building.