Allsop Residential Delivers Highest Total Since February 2009 (28/05/2010)
Allsop, the UK's leading property auction house, defied market jitters and converted 85% of nearly 400 lots
At a marathon two day residential auction sale this week, Allsop, the UK's leading property auction house, defied market jitters and converted 85% of nearly 400 lots on offer to raise £58m.
Held on 25 and 27 May at London's Cumberland Hotel, the sale comprised a broad mix of properties across the UK.
A higher proportion of lots than at previous sales was located in Scotland. 33 lots in total were offered north of the border for administrators and formed part of a £6m disposal of 47 lots. They drew strong competition from local buyers, some of whom attended although many bid remotely. Lots in Aberdeen, Glasgow and Edinburgh were significantly popular.
A total of 114 lots were offered on behalf of Allsop's in house receivership team. In all 216 distressed lots went under the hammer, making up 50% of the auction overall.
Seven Housing Associations were represented offering 28 lots between them.
Commenting on the result, auctioneer, Gary Murphy said:
"This has been a very exciting sale for us. We were particularly encouraged by the strong attendance on each of the two days and the determination of bidders to compete."
Although the impending Capital Gains Tax rises had not been confirmed formally prior to Allsop's deadline for their May sales, the firm reports a surge in potential instructions since the announcement for its subsequent sale.
"Increased CGT liability is an important driver now for many investors contemplating sales. Our 13 and 15 July sales are open for those hoping to make more tax efficient disposals before thresholds are raised" said Murphy.
Yield Analysis
Assured Shorthold Tenancies 8.23%
Assured Tenancies 3.73%
Regulated Tenancies 3.26%
Ground Rents over 80 years 5.61% (17.8YP)
Notable lots of the sale included:
Lot 16 143B Ashley Gardens, Westminster, London W1
A long leasehold fifth floor unmodernised two bedroom flat of approx. 1185 sq ft. Sold for £761,000 (guide price £650,000-£700,000).
Lot 27 19 Paddington Street, Marylebone, London, W1
A freehold building overlooking Paddington Street Gardens comprising a shop investment and four vacant flats. Sold on behalf of trustees for £1.75m (guide price £1.5-£1.7m).
Lots 33-35 20 Shepherd Street, Mayfair, London W1
Three self contained one bedroom flats, two vacant and one let on a regulated tenancy. Sold for £451,000, £436,000 and £312,500 respectively (vacant flats guided at £250,000-£275,000 and tenanted flat at £180,000-£200,000).
Lot 39 39 Amhurst Park, Stamford Hill, London N16
A freehold house in multiple occupation (HMO) with 14 rooms and let on unknown terms. Sold for receivers for £700,000 to local buyers (guide price £600,000+)
Lot 208 Land at Highfield Road, Whitby, North Yorkshire
A freehold 3.5 acre site with outline planning consent for residential development but blighted by a local residents' application for village green status. Offered "without reserve" and sold for £48,000 on behalf of Annington Property Ltd.
Lot 269 Flats A-H, 4 Great Junction Street, Edinburgh
Eight absolute ownership self contained flats within a prominent corner building in the city centre. All let on ASTs and producing £29,880pa. Sold on behalf of administrators as a parcel for £425,000 (guide price £300,000-£350,000).
Lots 357, 358 and 359 3 Flats, 33 Chestnut Row, Aberdeen
3 absolute ownership flats each let on a tenancy. Sold in lots on behalf of administrators for a total of £245,000 (total guides £105,000-£125,000). Yield 4.4%.
Lot 369 Flats 1-9, 125 St Georges Road, Glasgow
Nine absolute ownership purpose built flats over a bar and shops, Four flats vacant and five let on ASTs producing £29,400pa. Sold on behalf of administrators for £670,000 (guide price £450,000-£500,000).
Allsop's next residential sale will be held on 13 and 15 July at The Cumberland Hotel, London W1. Entries are now invited. List closes 15 June.
For further information please contact:
Gary Murphy
Equity Partner
Allsop
DL +44 (0)20 7344 2619
Email gary.murphy@allsop.co.uk