Orchard Street acquires Newcastle Shopping Park for €46m

Orchard Street Investment Management has announced the acquisition of Newcastle Shopping Park in Byker, Newcastle upon Tyne, for £40.5 mln (€46.5 mln), from Patrizia.

Fergus Egan

The purchase, made on behalf of a pension fund client, marks a significant addition to Orchard Street's UK portfolio and represents the second investment for its dedicated Decarbonisation Fund.
The 5.2-hectare retail park, strategically located just 2.7 kilometres east of Newcastle city centre, offers 21,666 m2 of fully let retail space. It is anchored by a 6,347 m2 Asda superstore and boasts a strong roster of national retailers, including TK Maxx, M&S Outlet, JD Sports, Pets at Home, B&M, and Iceland. The site also features a newly opened NRG Gym, office space, a social club, and a petrol station, complemented by 502 car parking spaces.
Orchard Street highlights the park's strong income-generating potential, with a WAULT of 8.9 years and 83% of income secured against top-rated covenants.
Orchard Street aims to implement a comprehensive suite of ESG-led asset management initiatives, including the installation of solar PV panels, the removal of gas systems to achieve A+/A EPC ratings, and the integration of EV charging infrastructure. 
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, stated: “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 advised Orchard Street, while Savills represented Patrizia in the deal.