Broadoak Asset Management have successfully assisted Reditum Capital with the sale of the Strawberry Place development site in Newcastle City Centre to Newcastle United Football Club for an undisclosed sum..

Having worked on the mixed use development project for the last 2 years in an Asset Management and Development Management role, Broadoak helped increase asset value through planning enhancements and helping to negotiate the extension of the long leasehold interest from site freeholder Nexus. The new planning permission saw an increase in the number of bedrooms in the proposed hotel to 213, a new rooftop bar, additional retail elements in 2 of the 4 blocks across the scheme, and amended layouts in the two planned residential buildings to meet new fire safety regulations.

Significant portions of the scheme including hotel, office, retail and residential had pre-lease agreements in place, but unfortunately increased build costs and the collapse of the appointed contractor delayed the planned start on site. At this point Broadoak helped the site owner to achieve a successful exit with an enhanced site value.

Broadoak Director Fergus Trim said: ‘Having worked up the development over the last two years it is disappointing that the current economic climate did not allow us to get on site and implement the planning consent. However, it was good to help Reditum achieve a successful exit from the site, and help deliver the sale of the site to the football club.’

Subsequent to the sale, Broadoak have been retained by Newcastle United FC to help them deliver some short term uses of the site, including a new temporary club shop and the new fan zone development.