The Multi-Strategy Property Trust for Charities has purchased the freehold of a Newcastle office block for £3.75m.

The Trust, under management by Cazenove Capital Management and advised by Protego Real Estate Investors, purchased the property in a “prime position in the city’s central business district”, off market.

The transaction reflects a net initial yield to the trust of 7.5 per cent per annum.

Nick Pink, managing director of investment at Protego, said: “This acquisition meets our current requirement for high quality assets, let off sensible rents in markets with favourable supply and demand dynamics. The above-average yield and medium-term growth potential are attractive features which underpin our performance expectations for the property.”

The property at 52-69 Grey Street boasts 17,000 sq ft of high quality office space, retail and leisure space over four floors.

In the last six months MSPTC also purchased a £5.6m parade of shops in Taunton reflecting a net initial yield of 7.2 per cent per annum.

John Gordon, director at Cazenove, said: “Ther recent acquisitions are both timely and income enhancing for our clients.”