K/S Westgate, represented by Savills and its Denmark-based associate Nybolig Erhverv København, has sold The Union Rooms on Westgate Road in Newcastle upon Tyne to JD Wetherspoon for £5.6 million, reflecting a net initial yield of 5.75%.
The five storey property is let in its entirety to Wetherspoon until 2034. It benefits from a high footfall location opposite Central Station and within close proximity to a strong night time leisure circuit.
Nick Lyell, associate director of licensed leisure at Savills, comments: “This acquisition forms part of JD Wetherspoon’s ongoing strategy to purchase the freehold of assets which are trading well in order to maximise profits. The new student accomodation developed on an adjacent site is likely to boost trade even further and we are pleased with the strong sale price achieved.”