Acting on behalf of leading North East hospitality and leisure business, Malhotra Group plc, our Newcastle Office Advisory team has secured an agreement to lease the 3,272 sq ft first floor of 50 Grey Street in Newcastle city centre.
Malhotra Group, which purchased the listed property - to be known as Malhotra House - in 2018 for £4m, is also preparing to relocate to the building, meaning that each of it's four floors will be in full use.
Italian restaurant Zizzi will continue to operate from its current ground floor site and Malhotra Group will relocate head office staff from its existing sites, at Groat Market and Scottish Provident House, into the office accommodation on the upper two floors.
The Group already owns several sites on the famous Regency street – hailed the most beautiful in Britain – including the boutique Grey Street Hotel.
Group chairman, Meenu Malhotra, said the purchase of the site is proof “of our ongoing commitment to the city centre. Sadly, while the majority of buildings on Grey Street are occupied at ground level, most of their upper storeys have been sitting empty for years,” he said. “By purchasing this site – and others – and occupying them in their entirety, we are breathing new life into them and we are very proud of that.”
Michael Downey, Associate Director in our Newcastle office, commented:
“We are thrilled to secure Lloyds Bank plc as a tenant for our client. The rent achieved matches the headline for Grey Street and, when combining this with the strength of covenant on offer, this is a truly remarkable result considering the offices have been vacant for a number of years.”
Malhotra Group PLC owns some of Tyneside’s most popular hotels, bars and restaurants, along with a portfolio of residential care homes under its Prestwick Care division.
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