The £40.5 million sale of Newcastle Shopping Park represents a standout retail investment transaction and a worthy winner of the CoStar Impact Award for sale/acquisition of the year, as judged by an independent panel of experts.
Taking place in a year when retail parks across the UK were much in demand, it reflected the rebounding sector across the country as well as the enduring appeal of well‑located, income‑secure retail parks and the growing importance of ESG‑driven value creation.
About the project: Bought by Orchard Street Investment Management on behalf of a pension fund client, the food store‑anchored scheme in Byker comprises 233,214 square feet of accommodation across a 12.9‑acre freehold site.
Anchored by a 68,320-square-foot Asda superstore, the park is fully let to a strong national tenant line‑up including TK Maxx, M&S Outlet, JD Sports, Pets at Home, B&M and Iceland, generating a total passing rent of £3.14 million a year. With a weighted average unexpired lease term of 8.9 years and 83% of income secured against top‑rated covenants, the transaction offers rare income certainty at scale.
For the vendor, the German fund manager Patrizia, the sale marks the successful execution of a value‑add strategy. Bought during challenging market conditions in 2020, the asset was actively repositioned through tenant mix enhancement, rental growth and the achievement of full occupancy.
For the buyer, the acquisition reflects conviction in dominant urban retail parks and a clear commitment to future‑proofing. Orchard Street plans to complete a programme of ESG‑led asset management initiatives, including solar PV installation, removal of gas infrastructure, EPC upgrades, biodiversity enhancements and EV charging provision. These measures are expected to drive rental growth, improve operational efficiency and align the asset with evolving occupier and consumer expectations.
It is the second acquisition for Orchard Street’s Decarbonisation Fund, part of its Social and Environmental Impact Partnership Fund.
What the judges said: Dr Jurgita Banyte, real estate and planning lecturer at Newcastle University, said: "In this project, ESG principles were not applied merely as a formal compliance requirement, but as a practical decision-making tool to ensure energy efficiency, sustainability, and a positive impact on the community."
They made it happen: James Hurst, director, retail and leisure investment, Savills, vendor representative; Patrick Hales, head of Bristol office/UK investment, Savills, vendor presentative; Jonathan Perkins, founding partner, KLM Real Estate, buyer representative; Will Andrews, director, KLM Real Estate, buyer representative.