One of Newcastle’s most iconic buildings — on what was once voted the UK’s best street — is close to putting up the ‘fully let’ sign less than a year after a buyout and upgrade.
Minel Leisure has operated one of its Marco Polo restaurants on the ground floor of the city’s Cathedral Buildings for more than a decade. Last year the mixed-use property on Dean Street was acquired by the restaurant’s directors, who also run parent company Minel Group, and “passed down” to subsidiary Minel Venues to own and manage.
Now, with more than £100,000 invested in an interior facelift, just one 1,900 sq ft office remains unlet. “When we purchased it 12 months ago now, the building was in need of some tender loving care and badly needed some new tenants,” explained Mintel Group director, John Wade.
“The office space above the ground floor retail was more than 50 per cent empty when we took it on, but we now have only one suite available, on the fourth floor with views over the cathedral to the west and the River Tyne to the east.”
The renovation of the 1901-completed six-storey building will be ongoing to provide tenants leasing the 28,000 sq ft of space with modern showers as part of the nationwide Go Smarter to Work scheme, to encourage cyclists and runners. There will also be upgrades to the lighting and communal areas.
“We only moved into the building in March last year so we’re very pleased that we only have one office space left,” Wade added. “We’re hoping it won’t be vacant for long because the building speaks for itself, with its big selling point being the east to west, floor to ceiling, windows that let in so much natural light you don’t need to put the lights on.”
Following the acquisition and improvement work, existing tenants including energy resources and environmental consultancy RPS Group and ADP Architects, extended their existing leases for another 10 years.
New signings included the staffing agency Jambo, Linear Recruitment and solicitors Nicholson & Morgan, which has taken space on the fifth floor. The Begbies Traynor Group, which specialises in corporate restructuring, will also shortly transfer from its long-standing Collingwood Street base.
Newcastle’s Cathedral Buildings also attract thousands of visitors each year who come to see the city’s legendary “Vampire Rabbit” — a mysterious grotesque perched above the building’s ornate rear door and facing St Nicholas Cathedral opposite.
In other commercial property news from the city, it has been announced that Union Property Services, a family owned property investment company, has signed a £100m refinancing package with NatWest Real Estate.
Wholly owned by the Sehgal family — including the Mukesh and Rakesh Sehgal brothers who in 1981 founded the international Visage fashion business — the asset and investment management firm says the additional funding will allow it to accelerate its acquisitions strategy, particularly across the North-East.
Raj Sehgal, a director of Union Property Services, commented: “This refinancing facility will give us the opportunity to deliver on our clients’ growth strategy which includes developments throughout the North-East region.
“We are committed to investing in these communities and rely on our continuing relationship with NatWest to make this a reality.”
Sehgal stressed that in addition to creating commercial and residential premises, his company’s refurbishment and development pipeline would also “benefit the local construction industry and its supply chain” throughout the UK.
David Salisbury is head of NatWest Real Estate in Yorkshire and the North-East region. “We are delighted to support the Sehgal family and Union Property Services with funding which complements their business growth ambitions,” he said.
“We have been working with them for a number of years and have developed a strong relationship with the directors and we are delighted to be part of their success for the future.”
