Commercial specialist Lambert Smith Hampton (LSH) has been hired to oversee the second round of property sell-offs by Newcastle City Council. Earlier this year the authority raised more than £10m from the disposal of unwanted land and buildings.
In January cash strapped city council bosses ordered the disposal of 15 land, commercial units and houses in a rationalisation of its estate. In that sale a car park plot close to Newcastle United’s Gallowgate ground went for £650,000 to an un-named buyer and a Halfords Autocentre raised £175,000.
Acting as agent, LSH has now placed nine other authority-owned properties, including former council offices and industrial units, into a 44-lot London auction next month.
The jewel in the crown of the latest sell-off is undoubtedly the O2 Academy music venue, on Newcastle’s Westgate Road. Run by the Academy Music Group, it has attracted scores of top performers over the past decade including the Prodigy, Paloma Faith and Rita Ora.
Commenting on its £625,000 guide price, a LSH spokesman added: “This is an excellent freehold ground rent investment, with six years left on a 99-year lease, producing £2,500 a year ground rent.”
Built in 1927, when it started life as a cinema before becoming a ballroom and later a bingo hall, it then underwent a major refit before reopening as a live performance and club venue with two halls; the main auditorium holds around 2,000 people with a smaller one licensed for 400. There are also offices, bars and other areas.
“As is extremely common with many buildings, Newcastle City Council is selling off a number of its property assets and freeholds,” explained an Academy manager. “This sale does not, however, in any way affect Academy Music Group and the trading of O2 Academy Newcastle. It is very much business as usual.”
The Old Fire Station and former council offices on Gosforth High Street will also go under the hammer with a £375,000 guide price. Dating back to the late 1880s, the asset has two detached buildings facing each other over an open yard. “This offers a rare opportunity for a refurbishment or redevelopment for commercial or residential use,” LSH adds.
Grade II listed Pendower Hall, in the Fenham area of Newcastle, is among the London lots with a guide price of £375,000. The hall – built for the banker JW Pease in 1867 – includes a manor house with stables, a coach house and a lodge, all set in just under 3.5-acres.
Stretching to survive more than £40m in cuts to its service, other commercial properties being sold by the city council include the Golden Fry fast food takeaway in Heaton, which is expected to fetch £110,000 and Coquet House job centre in Byker, with a guide price of £225,000.
“The city council is in the process of selling off vacant buildings and unused parcels of land and investing the proceeds in its capital programme to grow the city’s economy and create jobs,” explained an authority official.
“We believe that selling off unused assets, which can incur maintenance costs, and putting the proceeds into new investment will boost the city’s economy and help it emerge strongly from recession.”
