BILFINGER GVA, acting on behalf of clients of LaSalle Investment Management, have sold a retail and office investment in Newcastle city centre following high levels of interest.

New England House, located between the city’s two universities and near to the Haymarket Metro station, comprises a double-fronted 21,340sq.ft mixed use property with retail on the ground floor and four upper floors of offices. Current tenants include The Secretary of State for Defence and Reed Recruitment.

The long leasehold interest in the property was sold for £2.518m, equating to a net initial yield of 8.93 per cent after deducting purchaser’s costs.

“The sale of New England House is a good barometer of the investment market in Newcastle at present,” said Luke Symonds, senior investment surveyor at Bilfinger GVA.

“The building would suit conversion to student residential or private rented flats, though equally, the supply/demand balance for the offices sector is favourable, with a shortage of good-quality accommodation,” said Luke.