South Shields nightclub building going under the hammer at auction with a £250,000 starting price
A building which houses a popular South Tyneside nightclub could be auctioned off at a knockdown price this week after its owner failed to find a buyer at market rates.
The building, which houses House of Diamonds, previously named Glitterball, is up for grabs with a £250,000 starting price - £170,000 less than its advertised sale price.
The deal is for the bricks and mortar of the four-storey property in Ocean Road, South Shields, and includes the ground floor Beach Bar, which closed in January.
The property is being auctioned at the Grand Hotel, Gosforth Park, Newcastle, on Thursday, with the sale advert included on the businessesforsale.com website.
The auction relates only to the structure’s freehold and not to the nightclub business, which is operated by businesswoman Kerrie Katopodis.
The building, which has an annual rental value of £50,000, was put up for sale in early 2018 but there has been no positive purchase interest.
It is owned by a North Wales investment firm, whose name has not been disclosed and which could not be contacted for comment.
The firm is believed to be selling due to the property geographically sitting outside its larger portfolio area.
The site also remains for sale, believed to be for £420,000, with Newcastle-based property agent Christie & Co, which did not wish to comment.
Businessesforsale.com describes the property as having a floor area of around 1,327 sq m, and as being centrally located and an excellent investment opportunity.
In its advert, it adds: “Each auction property is offered at a guide price and is also subject to a reserve price.
“The reserve price is the seller’s minimum acceptable price at auction and the figure below which the auctioneer cannot sell.
“The reserve price, which may be up to 10% higher than the guide price, is not disclosed and remains confidential between the seller and the auctioneer.
“Both the guide price and the reserve price can be subject to change up to and including the day of the auction.”
Accounts for the year to December 31, 2016, show the former Glitterball and Beach Bar had a combined turnover of £783,998.