Co Down ex-bank building leased to coffee chain goes on sale for £500k
A former Ulster Bank building in Co Down — now occupied by Caffe Nero — has gone on the market for £500,000.
The ground floor 1,784 sq ft retail unit, located on Main Street in Newcastle, is currently being let to the coffee giant on a 10-year lease.
Mark Thallon, of property firm TDK, said the building had recently been refitted and represented an attractive investment opportunity.
“It is an attractive lot size and there is generally a lot of interest in the market at present.
“It is a 10-year lease to a national operator in a new purpose built unit,” he said.
“We expect to see a strong interest, as has been demonstrated by other comparable properties on the market.”
Caffe Nero began operating at the building in July after taking possession of the ground floor unit in June.
Mr Thallon said: “The building was a former Ulster Bank which we have redeveloped.
“We have put in a Nero on the ground floor and there are five apartments in the scheme as well.”
The current rental income generated by the building is £35,000.
The property was bought by Alterity Investments, which is now selling on the lot following refurbishment.
The Alterity Investments website states: “The new unit will occupy a prominent position fronting Main Street in the town centre and is situated amongst a combination of retailers, restaurants and cafes and surrounded by a range of guest houses and apartment developments.”
Caffe Nero is one of the fastest growing coffee shop businesses in Northern Ireland, with more than 20 stores in the province.
It has a dozen shops in Belfast, including the former Delaney’s cafe in Fountain Street, House of Fraser at Victoria Square and is due to open its latest at the Ormeau Road in the south of the city. Caffe Nero opened at several new locations last year, including at Royal Avenue and at the Soloist building near the Waterfront Hall, and at Ballyhackamore in the east of the city.
The coffee chain is now worth around £230m across its UK business and now boasts more than 700 coffee shops across the world.
Alterity Investments has been working with Caffe Nero to expand outside of Belfast locations.
Mr Thallon has previously said that the food and beverage sector was “undergoing a renaissance in Northern Ireland” over the past two years, adding:
“Alterity Investments are at the forefront of developing purpose-built destinations for operators having had recent success with Boucher Square, Belfast, which houses Prezzo, Nando’s, Frankie & Benny’s, Eddie Rockets and Costa Coffee,” he said.