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

Guide price

£450,000

Size

Ask agent

Tenure

Freehold

EPC

Ask agent

Parking

Ask agent

Primary use
Pub

Key features

  • Hospitality sale and leaseback opportunity
  • New lease with Cameron's Brewery Limited
  • Gross rental income of £45,000 p.a
  • Net Initial Yield: 9.57%
  • Site area: c.385.29 m. sq.
  • EPC Rating TBC
  • Christie & Co Ref: 6450583

Description

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.

Location

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).

The Opportunity

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.

Tenure

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)

Tenancy

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.

Covenant Information

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.

Additional information
Service charge
Ask agent
Business rates
Ask agent
Use class
Ask agent
Listed building
No
Business for sale
Yes
Energy performance certificate: Ask agent

An Energy Performance certificate helps you understand the current energy efficiency of a property.

Read more about EPC requirements

Ask agent

Environmental data
BREEAM rating
Ask agent
Environmental description
Ask agent
Read more about energy considerations for commercial property

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

NEAREST STATIONS

National Rail
London Tram

Newcastle Central Station

0.09 miles

London DLR

St James Station

0.39 miles

National Rail
London Tram

Manors Station

0.52 miles

About Christie & Co, Pubs & Restaurants

Christie & Co, Pubs & Restaurants

We’re the leading specialist advisor for buying and selling businesses in our sectors - hotels, pubs, restaurants, childcare, healthcare, convenience retail, leisure and medical.

If you’re looking to buy or sell a business in our specialist sectors – from a pharmacy in Sussex to a hotel in Austria – our expert advice and collaborative support will help you achieve your goals. You may be an independent first-time buyer or a multinational adding to your portfolio; either way, you’ll discover that our personalised service is focused on helping you achieve your ambitions.

Clients have access to our carefully managed network of potential buyers. This unique database of contacts has been continually developed by our advanced IT capabilities and benefits from both our years of experience developing our network and our wide geographical coverage.

Where we work

We employ the largest team of sector specialists in the UK and the largest group of hotel specialists in Europe, providing professional brokerage and advisory services from offices in major cities across Britain and Europe. And because we’ve been doing this for over 80 years, we know our sectors and local markets inside out. We work closely with our clients to guide and conclude transactions of any size, covering hotels, restaurants and pubs, leisure, forecourts and convenience retail businesses, social care and elderly care, childcare & education facilities, dental practices and pharmacies.

Our professional services

We offer unrivalled insight, experience and expertise across your choice of services, including brokerage, consultancy, finance, development, investment, surveying, rent reviews, dispute resolution, corporate valuation, and turnaround & recovery. These services are all underpinned by our in-depth market intelligence and leading-edge technology. And we’re accredited by the Royal Institution of Chartered Surveyors (RICS), so you can trust in our professionalism.

What makes us tick

Businesses are about people, so relationships matter to us. We bring an integrity and transparency to business which can be all too rare – and that’s why people trust us. Our clients will attest to our genuine desire to help achieve their objectives, our attention to detail, and our tireless hard work on their behalf. We understand that buying a business can bring its own pressures and strains; needs can change, plans may need to be adjusted, and opportunities can come and go. But we’re always here, a constant, flexible and reliable force you can count on.

Our opening hours for all offices:

Mon – Fri, 9am – 5.30pm

Your search history

You have no recent searches

Disclaimer - Property reference 6450583-fh. The information displayed about this property comprises a property advertisement. Rightmove.co.uk makes no warranty as to the accuracy or completeness of the advertisement or any linked or associated information, and Rightmove has no control over the content. This property advertisement does not constitute property particulars. The information is provided and maintained by Christie & Co, Pubs & Restaurants. Please contact the selling agent or developer directly to obtain any information which may be available under the terms of The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 or the Home Report if in relation to a residential property in Scotland.