Head of Steam, 2 Neville Street, Newcastle City Centre, NE1 5EN

Description

The property occupies the basement, ground floor and first floor of a six storey commercial building of mid‑century construction.

The building extends to just under c.385.29 sq. m. and sits on a site of approximately 0.487acres.

The Head of Steam occupies a prominent position on Neville Street, directly opposite Newcastle Central Station, the city’s main rail hub and a major gateway for regional and national travellers.

This high‑profile location benefits from strong, consistent pedestrian flows driven by station footfall and the surrounding cluster of hotels, offices and hospitality businesses.

Neville Street forms part of an established city‑centre leisure circuit with convenient links to Collingwood Street, Grey Street and the Bigg Market. The immediate area supports sustained customer demand throughout the day and evening.

Public transport connectivity is excellent. Central Station provides direct rail services to key UK cities including Edinburgh, York and Leeds, while numerous local bus routes and strategic road links via the A167(M) and A1(M).

Opportunity to secure a passive income by way of rent from a long‑established and reputable hospitality operator, whilst owning the long leasehold interest in a prime city centre asset.

Long Leasehold:

Landlord: Baron House Developments LLP
Term - 47 Years
Expiry: 16/12/2073
Service charge: tenant must pay a fair proportion of the costs set out in the Third Schedule.
Ground rent: £1 per year (if demanded)

The property is currently operated by Head of Steam within the managed estate of Camerons Brewery Limited. Camerons Brewery has instructed Christie & Co to dispose of the long leasehold interest and simultaneously take a new occupational lease as part of a sale and leaseback arrangement.

Tenant: Camerons Brewery Limited (parent company)

Lease term: the seller is looking to take a minimum 10 year lease but is open to a 15+ year term

- Rent review: upwards only to market rent of in line with RPI

- Rent Review frequency: to be discussed and will be partly determined by lease length.

Cameron's Brewery was founded in 1865 and is a long‑established brewery and pub operator based in Hartlepool. The group operates a mixed estate of managed and tenanted venues, including its well‑known Head of Steam brand.

For the financial period 1 January 2024 to 5 January 2025, Camerons Brewery generated £60.2 million in turnover. EBITDA increased to £4.6 million, up from £3.9 million the previous year. Profit before tax totalled £9.5 million, largely driven by an exceptional credit of £10.6 million arising from the company’s refinancing.

Cameron's Brewery Limited has a Dun and Bradstreet rating of 3A3 with low risk of business failure.