Property group M Core has completed the acquisition of The Gate, the 235,288 sq ft drinking, dining and entertainment destination in Newcastle city centre. The deal comes less than a year after the site was put up for sale by The Crown Estate.
Second major city centre deal
The acquisition marks M Core's second major city centre deal, coming five months after it purchased Eldon Garden shopping centre. The amount paid for The Gate, which spans two large buildings on Newgate Street, has not been disclosed. However, the site was marketed with a price tag of £15.65m, significantly down on the £60m The Crown Estate paid for it in 2012.
The property will be managed by Sheet Anchor Evolve. M Core said the acquisition "strengthens the group's growing portfolio of well-located retail and leisure destinations across the UK."
Occupiers and facilities
The Gate is Newcastle's only covered city centre leisure destination, anchored by a 12-screen Cineworld cinema and Bally's Casino. Occupiers include Lane7, Fayre Play, Cosmo, Kiss, Nando's, Pizza Hut, Wetherspoon's The Keel Row, MOJO, The WonderBar, Escape Group, Game of Throwing and The Mayfair Pub & Kitchen, with Tia's Mexican and Funstation due to open soon. The site also includes a 275-space car park open 24 hours a day.
Danny O'Keefe, co-founder of Sheet Anchor Evolve, said: "The Gate is a significant leisure destination in a strong city centre location. It has an established line-up of occupiers, a wide regional catchment, and an offer that reflects how people increasingly want to spend their leisure time."
Portfolio growth
M Core said the acquisition reflects its long-term approach to ownership and investment. Its North East portfolio now includes Bridges Shopping Centre in Sunderland, Park View shopping centre in Whitley Bay, The Forum in Wallsend, The Viking Centre in Jarrow and Killingworth and Newton Hall in Durham.
Pete Atkinson from Savills represented M Core on the acquisition. Richard Padley of Smith Young and Josh Howe of Savills have been appointed joint leasing agents for The Gate.
