Prime Newcastle Office Building The Spark Hits Market with £33.95m Price Tag
The Spark, a prominent 12-storey office building located at the Newcastle Helix development, has been officially listed for sale by its landlord, Legal and General. Property advisor Savills is leading the sale and is seeking offers in excess of £33.95 million for this premium city centre asset.
A Flagship Development at Newcastle Helix
Welcoming its first tenants in 2022, The Spark was among the inaugural properties constructed at the 24-acre Newcastle Helix site. This innovative science and business park, situated on the former Scottish and Newcastle Brewery grounds near St James' Park, integrates office, residential, and scientific facilities. It has evolved into an internationally recognised hub for research, education, and business, featuring notable buildings such as The Core, Biosphere, and The Catalyst.
The Spark, which stands adjacent to its twin office building Lumen, offers 105,906 square feet of high-quality office space across the ground and eleven upper floors. The property is currently fully let, with significant potential for future rental growth, making it an attractive investment opportunity.
Sustainable and Well-Connected Location
This landmark building holds a BREEAM Excellent rating and an EPC 'A' rating, underscoring its strong environmental credentials. It is powered by the site's District Energy Centre, a centralised system that provides affordable heating to all businesses and residences via an underground pipe network. This innovative system is projected to save over 30,000 tonnes of carbon emissions across the next four decades.
Promotional materials highlight The Spark's prime position within Newcastle's leading office district, with excellent access to retail, leisure amenities, and robust transport links including metro and rail services.
Strong Tenant Roster and Full Occupancy
The building already hosts major organisations such as the region's largest law firm, Womble Bond Dickinson, and the National Audit Office. Furthermore, full occupancy will be achieved later this year following an agreement with Arden University, headquartered in Coventry. The university has secured 27,095 square feet across the ground, first, second, and third floors for relocation in early spring.
Establishing a Regional Benchmark
Savills indicates that a sale at £33.95 million would represent a net initial yield of 8%. Such a transaction is expected to set a new benchmark for top-tier office properties in the North East region.
Peter Atkinson, director in the Savills Newcastle investment team, commented: "This is one of the very best office buildings in Newcastle offering a hugely exciting opportunity for an investor. The strong demand combined with the relative lack of stock in the market and highly restricted development pipeline, means we'll see both significant and imminent rental growth, as occupiers seek high-quality office space."
Context of Recent Council Decisions
Legal and General's decision to sell comes shortly after Newcastle City Council approved a publicly-funded refurbishment for The Core, the Grade A office building at the heart of the Helix development. The Core, the first building to open at Helix, has been identified among several council-owned properties underperforming due to vacancy issues.
