Allsop Residential on a roll with £45m 84% May Marathon

Allsop's residential auction team brought its total for 2011 to £128m last week with a marathon single day sale which raised £45m from the sale of 269 lots. The 84% success rate contrasts with an industry average of 67% (source: EiG).

"Allsop has been weathering the storm well" said auctioneer, Gary Murphy. "We had a particularly strong catalogue this time and that was recognised by our market. The Park Lane Hotel is a large venue yet it was full to capacity from the start."

The sale offered a broad mix of property types and values from multi million pound stock in central and greater London to small sites and ground rents. The highest price paid on the day was for Sutherland Street, Pimlico, London SW1, a freehold building arranged as six flats. It achieved £2.19m from a guide of £1.8m - £1.9m.

The morning session included a selection of 23 regulated tenancy investments.  22 sold establishing an average yield from the sale of 4.1% (March sale 4.6% and February sale 4.2%).

"Although this market is dominated by four corporates, it's interesting to note that new faces emerge at almost every sale" said Murphy.

The sale concluded with a separate evening session of ground rent investments ranging from reversionary houses to large apartment blocks.

"The ground rent market is highly specialised. Investors tend to be price focussed and pretty disciplined in the room. Demand remains keen. The more competitive investors at the sale quickly identified themselves and fought each other for the 40 lots on offer. It was a fast paced session at 90 seconds a lot, almost twice the speed of the main sale."

Allsop is now planning its July sale and expects to build a substantial pre summer recess catalogue off the back of its recent successes.

"The residential auction market is the most active in the property sector currently" said Murphy. "There's nothing for which competition can't be created through imaginative marketing and market driven pricing. It's such an efficient route to disposal."

AT A GLANCE

REGIONAL ANALYSIS (ALL LOTS) 

INVESTMENT YIELD ANALYSIS

NB Multi lot sales are not included

VACANT UNITS (INDIVIDUAL HOUSES AND FLATS)

Highlights included:

Lot 35 – 54 Sutherland Street, Pimlico, London, SW1V 4JZ
An attractive freehold mid terrace building internally arranged to provide six self-contained flats.  Vacant.
Sold: £2.19
Guide Price: £1.8M -£1.9M

Lot 56 – Land at Greenhill Way, Harrow, Middlesex, HA1 1LD
A freehold site extending to approximately 0.185 hectares (0.456 acres)
Planning permission for 'redevelopment of former car park to provide a block of 37 flats with associated parking, amenity space and landscaping'.  Once completed, the scheme will provide 16 x one bedroom flats, 11 x two bedroom flats, two x three bedroom flats and one x four bedroom flat.
Producing £11,500 p.a. from an advertising hoarding plus 50% of car park fees.
Sold: £2M
Guide Price: £1.9M - £2M

Lot 113 – 1 Park Avenue, Mossley Hill, Merseyside, Liverpool, L18 8BT
BY ORDER OF A HOUSING ASSOCIATION
A freehold semi-detached building (lodge house) arranged to provide fifteen self-contained flats.  Vacant.
Sold: £915,000
Guide Price: £400,000-£450,000

Lot 129 – Richmond House, 1-3 Richmond Place, Brighton, East Sussex, BN2 9NA
BY ORDER OF A HOUSING ASSOCIATION
A freehold end of terrace building arranged to provide 15 self-contained flats. Fully vacant.
Sold: £1.48M
Guide Price: £1.1M - £1.2M

Lots 273-278 – Woodstock House, Woodstock Road, Croydon, Surrey, CR0 1JS
BY ORDER OF ADMINISTRATIVE RECEIVERS
A freehold purpose built block arranged to provide six self-contained flats.  Five flats subject to assured shorthold tenancies and one flat vacant.  Producing £53,400 p.a.
Sold: £975,000
Guide Price: £950,000-£970,000

Lot 242 – 7 Broadwater Road, Worthing, Sussex, BN14 8AD
BY ORDER OF ADMINISTRATIVE RECEIVERS
A freehold semi-detached building arranged to provide 13 flats.  Ten flats subject to assured shorthold tenancies and three flats vacant. 
Sold: £765,000
Guide Price: £760,000-£770,000

Notes to editor

Allsop is an independent property consultancy with a market-leading reputation for high quality service, integrity and innovation. We are also well known as the UK’s largest and most successful auction house.  Our success is built on over 100 years’ experience in commercial and residential property consultancy and sales.

Contact

To arrange an interview or for the supply high resolution images or further information please contact Jennifer Mortimer

Jennifer.mortimer@allsop.co.uk
020 7543 6728