New phase of redevelopment is taking shape

Jul 9 2008 by Graeme King, The Journal

WORK has begun on a mixed use development in Byker worth £2.8m after agents for the scheme secured five vital pre-lets.

Developer Rokeby from Barnard Castle is on site with phase 2b of its extensive redevelopment of the bottom of Shields Road, having already worked on the nearby Morrisons super- market, Gala bingo hall and KFC drive through restaurant.

The new, two-storey building will involve six retail units and two office suites, all designed by the Newcastle office of architect Ryder.

The shops will all face Shields Road and will range in size from 657 sq ft to 1,424 sq ft, while the office accommodation will provide occupiers with floorplates of 3,700 sq ft and 2,500 sq ft.

Four of the six shops have now been let, with Greggs taking 1,022 sq ft, Norchem Pharmacy taking 1,424 sq ft, Marie Curie Cancer Care has 938 sq ft and the Thoughts card and gift retailer will occupy 647 sq ft.

The retailers are paying around £20 per sq ft for committing to pre-lets, but agent Sanderson Weatherall is hoping to achieve a little more for the remaining space.

The phase 2b scheme is being built by local contractor, Interserve, and the company is also set to move into the building on completion, moving away from its current home in Forest Hall.

Interserve will take the larger 3,700sq ft office, at a rent of £14.50 per sq ft, leaving a 2,500sq ft unit still available.

On the retail side of the scheme, just two units remain available, with 847 sq ft and 989 sq ft respectively. Rokeby has said it is willing to combine the space for the right tenant.

Adrian Goodall, director of Rokeby Developments, said: “We currently have a total of 250,000 sq ft of retail developments on site at present and remain confident about the retail market despite prevailing market conditions.

“The retail sector is still interested when it comes to good quality accommodation, in the right location, at the right rental levels.”

Lawal Zubairu of Sanderson Weatherall said: “We have already had a number of speculative enquiries, however, now that construction has commenced, I anticipate that the level of interest will rise.

“Potential tenants will see the development as an attractive proposition, especially with Greggs, Marie Cure Cancer Care and pharmacy operator, Norchem as neighbours, which all have a complementary customer base.”