Acting on behalf of Tritax, CBRE’s Capital Markets team has sold the 100,353 sq ft Q8 office building at Quorum Business Park, Newcastle occupied by Tesco Bank for £17,500,000 which represents a Net Initial Yield of 8.1%. The purchaser was represented by Blackman Investments.
Quorum Business Park comprises over 870,000 sq ft of offices on an 18 acre former Enterprise Zone four miles north of Newcastle City Centre. The site is one of the UK’s most established business park locations with occupiers including; HMRC, Balfour Beatty, IBM, Convergys and Aesica. Quorum Business Park has secured over 260,000 sq ft of take-up since 2010.
Tesco Personal Finance Plc, trading as Tesco Bank, leased the 100,353 sq ft Grade A Q8 building in 2009 on a 15 year term. Currently around 800 employees work from the modern, ‘L’ shaped building with capacity to expand to over 1500 people.
Robin Bullas, Associate Director of Capital Markets at CBRE Leeds, said; “As one of the most high profile business parks in the North of the country, Quorum Business Park’s success is evident in the calibre of occupiers it attracts and retains. Tesco Bank’s strong covenant in context with the overall prosperity of the Park proved to be a key factor in attracting investor interest. The deal provides a boost to the North East investment market and signifies the region’s ability to secure large deals such as this.”