Karlin Real Estate announced today that it has acquired a 97,935-square-foot retail project in Gateshead, a vibrant urban town near Newcastle upon Tyne, from UK-based real estate firm Reef Estates, in an all-cash transaction valued at £8.55 million. The project, which is located in the regional capital of Northeast England, marks Karlin’s first retail acquisition in Europe since it entered the market in August 2013.
Comprised of two recently renovated, two-story buildings, the asset includes: Jackson House, a vintage 19th Century building, and the 1960s-era New Century House. The buildings are located at Jackson and West Streets, opposite the town’s main transportation hub, Gateshead Interchange. Together, the buildings feature 75,000 square feet of street level retail and 22,000 square feet of office and medical space. The retail space was fully leased to a strong roster of tenants at closing, including national retailers Halifax Bank (Bank of Scotland), Argos, The Tilley Stone (JD Wetherspoon), PureGym, and Peacocks. The office component is renovated and currently 52 percent leased.
“Gateshead is the first of several retail assets in the UK and Ireland that we are looking to add to our portfolio in the next several months,” said Karlin’s Managing Director Joseph Self, who heads firm’s London office. “Its balanced tenant roster and location across from the Gateshead Interchange and adjacent to the new Tesco-anchored Trinity Square is attractive to us.”
Karlin continues to eye several regional UK and Irish retail assets as part of its strategic plan to invest up to £600 million in European commercial real estate assets through both its debt and equity platforms. Karlin currently holds a European portfolio of approximately 850,000 square feet.
Global Mutual, a real estate investment and asset management company advised Karlin on the transactions and have been retained as the asset manager.
