Strategically located just 1.7 miles east of Newcastle city centre on the A193, the 12.9-acre freehold site comprises 233,214 sq. ft of retail space anchored by a 68,320 sq. ft Asda superstore—one of the best-performing stores in the North East. The scheme includes 10 retail warehouse units, a newly opened NRG Gym, office space, a social club, and a petrol station, with 502 car parking spaces and excellent connectivity via the A1, A19, and Chillingham Road Metro Station.
The park is fully let to a strong roster of national tenants including TK Maxx, M&S Outlet, JD Sports, Pets at Home, B&M and Iceland, generating a total passing rent of £3.14 million per annum. The asset boasts a Weighted Average Unexpired Lease Term (WAULT) of 8.9 years, with 83% of income secured against top-rated tenant covenants.
Orchard Street will pursue several ESG-led asset management initiatives, including the installation of solar PV panels, removal of gas systems to upgrade EPC ratings to A+/A, enhancements to biodiversity and EV charging infrastructure. These improvements are expected to support rental growth and align the asset with growing occupier demand for energy-efficient, future-proofed retail environments.
The acquisition, the second for Orchard Street’s newly launched Decarbonisation Fund, aligns with the firm’s broader strategy to invest in well-located, income-generating assets that offer long-term value creation potential through active management and measurable decarbonisation outcomes.
Fergus Egan, Partner at Orchard Street, commented:
"Newcastle Shopping Park is a high-quality, income-generating asset in a thriving urban location with significant ESG potential. Its strong tenant mix, strategic location, and potential for further development make it a key addition to our growing UK portfolio."
Ker Gilchrist, Head of Investment Management UK at PATRIZIA:
“The completed disposal of Newcastle Shopping Park marks the successful conclusion of PATRIZIA’s value-add strategy for the asset. Acquired in 2020 during challenging market conditions, the asset was actively repositioned to drive rent growth, enhance tenant mix and achieve 100% occupancy ahead of sale.”
KLM acted on behalf of Orchard Street, while Savills represented Patrizia in the transaction.