The building of global fast food brand KFC, located on a popular North East retail street, has been put on the market.
Situated on the bustling Northumberland Street, Newcastle, the property is being managed by Watling Real Estate.
This pedestrianised area is considered the city's main retail district, surrounded by high foot traffic and major retailers like Marks and Spencer, JD Sports, Primark, Fenwick, and TK Maxx.
It also benefits from being in close proximity to Eldon Square Shopping Centre, Monument Mall, Haymarket Metro Station, the Civic Centre, and the campuses of Newcastle and Northumbria Universities, ensuring a steady stream of potential customers.
The property itself is a three-storey, mid-terrace high street building made from brick and stone masonry.
KFC currently occupies the ground floor, complete with ordering stations, a service counter, seating, an industrial kitchen, staff areas, and a WC.
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Service access is available through a communal yard at the rear of the building.
Its upper two floors, however, are vacant office spaces, accessible via a separate entrance on Northumberland Street. These floors are in need of refurbishment, offering potential for medium-term redevelopment or alternative use.
The ground floor is leased to Splendid Restaurants (Harland) Limited, a franchisee operating around 38 KFC branches in the North East and lease is set for 20 years, from December 1, 2015, to November 30, 2035, with an annual rent of £95,000.
Lease includes five-yearly upward-only open market rent reviews, with the next review due on December 1, 2025.
There is also a tenant-only break option on November 30, 2025.
Lease obligations are backed by Splendid Hospitality Group LLP, a larger parent company with a portfolio in hospitality and residential properties, adding a level of security to the investment.
The property is held on a freehold basis and is VAT-registered, with the transaction potentially qualifying as a Transfer of a Going Concern (TOGC), depending on the buyer's criteria.
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