Shelborn Quorum Limited has secured the acquisition of eight office buildings at Quorum Business Park in Newcastle.
The vendor was represented by Cushman & Wakefield, whilst Avison Young acted for Shelborn Quorum Limited.
The predominantly freehold interest (part long leasehold) comprises eight Grade A buildings extending to 458,837 sq ft along with extensive parking provision, amenity offer and further development opportunities. Quorum is an established business park with proven letting performance and an excellent track record for tenant retention. The portfolio offers active asset management opportunities at upcoming lease events, letting of vacant space as well as expansion of the retail and on park amenities.
Quorum provides high specification accommodation in a mature landscaped setting with excellent connectivity, parking provision and leisure/amenity facilities.
The buildings comprise highly flexible Grade A office accommodation with zero capital expenditure requirements, representing a significant discount to new build costs. The asset provides a diverse income stream let to 20 tenants including major occupiers such as Balfour Beatty, DVSA, Capita and Greggs PLC.
Brian Rabinowitz, Director at Shelborn said: “Quorum is an outstanding business park with huge potential. The supply line within the Newcastle conurbation is almost non-existent and the demand for space is growing. We believe that current market conditions will provide for strong occupier demand and great letting potential.”
Peter Atkinson, Partner at Cushman & Wakefield commented: “The North East continues to see strong performance in its out of town office market which has long term average take-up levels of some 590,000 sq ft per annum, more than twice the size of the in-town market. It is therefore no surprise that we received strong interest in this asset. Quorum has a proven track record of performance with occupancy increasing from 19 to 51% over our client’s last five years of ownership. As one of the leading office parks in the country, little standing competition and a non-existent development pipeline, I have little doubt it will continue to perform. In Shelborn it has highly experienced new owners who will invest in the park and I am sure will take it from strength to strength.”
Simon Beanland, Principal and Head of Investment at Avison Young, Newcastle commented: ”Our clients were delighted to secure eight modern grade A office buildings on one of Newcastle’s most successful business parks . They seek to produce high returns in the office sector. This opportunity at Quorum met Shelborn’s investment criteria, offering numerous asset management opportunities through lettings and lease restructures, which can produce high level returns for clients.“
Avison Young and Cushman & Wakefield have been retained to let the remaining vacant space.