Headline
117 High Street, Gosforth, Newcastle upon Tyne NE3 1HA – Freehold Café and Studio Investment (Sale & Leaseback)
Price
Offers in excess of £460,000 (subject to contract)
Strapline / short summary (for search results or card view)
Freehold mixed retail and leisure investment on the stronger southern pitch of Gosforth High Street. Sale and leaseback of the ground floor to the owner-operator of Hopscotch Café | Play on a new 10-year FRI lease with a break option and open market rent review at year 5, with the first floor let to Club Pilates Ltd, also on FRI terms. Passing rent £32,000 pa, reflecting a net initial yield of 6.66% and a reversionary yield of 8.74%.
Key features
Freehold
Sale and leaseback of the ground floor to the vendor on a new 10-year FRI lease, with a break option and open market rent review at the 5th anniversary
First floor let to Club Pilates Ltd (t/a Gosforth Springs Studio) on FRI terms until May 2031, with its own street entrance
Prominent position on the southern section of Gosforth High Street
Passing rent £32,000 pa; ERV £42,000 pa
Ground floor rent reflects approx. £27.60 per sq ft Zone A, well below recent High Street evidence of £44–£55 Zone A
Net initial yield 6.66%; reversionary yield 8.74%
Low lot size in one of Newcastle’s most sought-after suburbs
EPC rating B (29)
Location
Gosforth is one of Newcastle’s most affluent and established suburbs. It lies immediately north of the city centre along the Great North Road and is popular with families, young professionals and retirees, giving it a strong, year-round consumer base.
The High Street is the suburb’s main retail and leisure destination. It is anchored by Gosforth Central Shopping Centre and supported by national multiples, independents, cafés, restaurants and bars.
The property is on the western side of the southern section of the High Street, close to the Shopping Centre. Nearby occupiers include Caffè Nero, Greggs, Newcastle Building Society, Novellos and Pepe’s. South Gosforth and Regent Centre Metro stations are close by. The A1 is quickly reached via the Great North Road, and Newcastle International Airport is a short drive away.
Description
The property is a two-storey, stone-fronted mid-terrace building with a full-height glazed shopfront directly onto Gosforth High Street.
The ground floor is occupied by the vendor, trading as Hopscotch Café | Play, and will be leased back on completion. It is fitted out as a café with a dedicated children’s play area and has a rear courtyard garden.
The first floor is self-contained with its own street entrance and is let to Club Pilates Ltd, trading as Gosforth Springs Studio, as a fitness studio.
Accommodation & Tenancy
Floor | Tenant | Use | Sq ft (sq m) | Rent pa | Lease | ERV pa
Ground | Vendor (t/a Hopscotch Café | Play), leaseback | Café & play | 1,759 (163) | £20,000 | New 10-year FRI lease from completion; break and open market rent review at year 5 | £30,000
First | Club Pilates Ltd (t/a Gosforth Springs Studio) | Fitness studio | 839 (78) | £12,000 | 15/05/2023 to 14/05/2031, FRI | £12,000
Total | | | 2,598 (241) | £32,000 | | £42,000
The ground floor will be leased back to the vendor on completion on a new 10-year lease on full repairing and insuring terms. It will have a break option at the 5th anniversary of the term and a rent review at the 5th anniversary to open market rental value. The first floor lease is also on full repairing and insuring terms. The tenant’s 2025 break option was not exercised. Net internal areas are to be confirmed by measured survey. Copies of the leases are available on request.
Market Commentary
Recent lettings on Gosforth High Street include Say When at 113–115 High Street (December 2025, £45,000 pa, £55 Zone A), Kult Coffee Shop at 161–163 High Street (August 2025, £19,500 pa, £45 Zone A), Newcastle Building Society at 105–107 High Street (February 2025, £35,000 pa, £45 Zone A) and Loungers (Tremolo) at 92 High Street (January 2025, £65,000 pa). Recent evidence sits between £44 and £55 Zone A, which supports the ERV of £42,000 pa and points to reversionary potential.
The southern section of the High Street is fully occupied and widely regarded as the more desirable pitch. On the investment side, 105–107 High Street sold for £710,000 in February 2025 with a new 15-year lease to Newcastle Building Society, completing ahead of the asking price. Investment opportunities on Gosforth High Street rarely come to the market.
Proposal
Offers are invited in excess of £460,000 (Four Hundred and Sixty Thousand Pounds), subject to contract, on a sale and leaseback basis. This reflects a net initial yield of 6.66% and a reversionary yield of 8.74%, after allowing for purchaser’s costs.
VAT
We understand the property has not been elected for VAT, so VAT will not be charged on the purchase price.
EPC
Energy Performance Asset Rating B (29), valid until 21 October 2036. A copy is available on request.
Anti-Money Laundering
Two forms of identification and confirmation of the source of funding will be required from the successful purchaser.
Viewing
Strictly by appointment through sole agent Bradley Hall.
