The Gate, Newcastle, purchased by the Crown Estate for £60 million (UK)

The Crown Estate has strengthened its £1.5 billion (approx. €1.8 billion) regional portfolio with the acquisition of The Gate, Newcastle, from investor clients of Delancey, the Royal Bank of Scotland, for £60 million (approx. €75 million) at a net initial yield of 6.7%. Delancey has been asset managing the building since its purchase from PropInvest in December 2010.

The Gate is the only covered leisure scheme in Newcastle. It comprises 18 units and spans 210,000 ft² (approx. 19,509 m²). The venue is anchored by an Empire cinema and current occupiers include Nandos, The Restaurant Group, Pizza Hut and J D Wetherspoons.

Jenny Mulligan, Regional Portfolio Manager said: "This purchase provides a fantastic opportunity to capitalize on the strong relationships we have established with the numerous restaurant and leisure operators across our regional portfolio. It reflects a natural progression and will complement our portfolio of dominant prime retail assets, now worth more than £1 billion."

By value, retail properties represent over two-thirds of The Crown Estate's regional portfolio and more than £500 million has recently been invested in the sector. Its 14 retail parks are in prime regional locations, including Leeds, Slough, Portsmouth, Harlow and Nottingham. Shopping centers are also a key part of the portfolio and include two 50:50 joint venture partnerships with Land Securities at the Westgate Shopping Centre in Oxford, and the Princesshay Shopping Centre in Exeter.

Source: The Crown Estate

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