A London investment firm has snapped up the iconic, award-winning Generator Studios in Newcastle, in an off-market deal worth £6.45m.
Knight Frank Newcastle’s capital markets team sought out the investment opportunity on behalf of Vengrove and A.S.K. Partners.
The property, which has 11 tenants including Hedgehog Lab, Gardiner Richardson, Black and White Engineering and Atlas Cloud, was purchased from Metnor Group for £6.45m reflecting a net initial yield of 8.75%.
Vengrove Partner Dan Dutton said: “We are very excited to have secured a unique and popular office building with a proven track record of attracting and retaining a wide pool of businesses including those from the creative and tech sectors.
“Based on our research, we believe that Newcastle’s vibrant digital economy has a lot of growth ahead of it. By acquiring Generator Studios, we are well positioned to benefit from that growth as we can offer businesses the type of space that their staff and clients increasingly expect”, said Dan.
Vengrove, in consultation with the tenants, is working on progressive plans to enhance and modernise the property and its services – particularly in relation to health and wellbeing. Ideas being discussed include new bike racks, the creation of a small gym or yoga studio, more inspiring communal areas and a café that provides better quality and healthier food and drink options.
The property’s brand, marketing and overall image are also set for a major overhaul.
Partner at Knight Frank Newcastle, Douglas Cranston said: “Vengrove base their acquisitions on thorough research and are very aware of the potential the North East region has to offer. They have had their eye on Generator Studios for a while and it was up to us to make that deal happen.
“We are just as excited as Vengrove are to see the untapped potential of Generator Studios reached.”
Generator Studios is a listed building which once housed the power system for Newcastle’s electric tramway.
