A mixed use building was identified by Lexicon as an excellent opportunity for redevelopment for an hotel. The property was acquired on behalf of a specialist BPRA fund following keen interest from a number of parties. The building occupies a prime location opposite Newcastle’s Central Station and comprised c 84,000 sq ft over 7 floors and leisure below. There were several immediate hurdles to be overcome to deliver the redevelopment. These included the following:
Part of the building was held long-leasehold which did not permit the proposed uses. Lexicon worked closely with the Freeholder a local charitable trust to deliver a solution which provided their income but would facilitate the redevelopment and unfettered future management of the property
Two tenants occupied the property, one lease being subject to mutual break provisions. The other tenant however needed to relocate and a package of measures were agreed with the Tenant to permit the development to progress
Liaison with tenants of what at the time was an ‘unloved building’. The external concrete cladding was in poor repair necessitating unsightly scaffolding to erected and which had been under previous owner been left without any solution to the problem. Lexicon liaised with the Tenants of the building to keep them fully informed of the redevelopment plans and allay fears that the building would not be imminently improved
Working with the construction team and solicitors Lexicon identified potential areas of conflict between tenants rights under leases and the practicalities of redevelopment of a tight city centre site. This included scheduling of all rights including service access. Regular consultations were set in place with tenants to ensure any issues were identified at an early stage.
Lexicon worked with the management agents to substantially overhaul and reduce the service charge.
July 2014: The Hampton by Hilton opened offering 160 rooms. The exterior was rec-clad and tenants of the ground floor invested substantially in their premises to further enhance the location.
SEPTEMBER 2016: Lexicon had advised on redeveloping an underused car park to provide a prime leisure unit. The property was marketed and leased to Newcastle Tap further enhancing the property’s value.