In the firm’s final commercial auction of the year, Allsop raised over £117.6m across two sessions on 5 and 6 December, a year-on-year increase of almost 100% on the £59.8m sold at the commercial auction held in December 2015.
The result takes the total realised by Allsop’s commercial auction department in 2016 to a record of £605m, against a 10-year average of £450m. With a total of 170 commercial lots sold, it was the largest December catalogue offered by the auction house for a decade.
The average lot size was £691,000, compared to the average lot size of £620,000 to date in 2016. A total of 39 lots sold at over £1m either prior to or at the auction, representing 23% of the catalogue, against the 2016 average of 16%.
The largest lot to sell was Lot 13, a retail parade on Kentish Town Road, which sold for £4.06 million from a guide price of £3.8m, reflecting a net yield of 5.3%.
Other high value lots include Lot 164, a town centre parade of shops, offices and flats in Reigate that sold for £3.275 million; Lot 177, a car park site in Hounslow, 2 miles from Heathrow Airport, that sold for £3.1m; and Lot 20, a freehold estate agent and office investment on London Street in Paddington that sold for £2.9m.
Major competition for good locations resulted in average margins above the reserve prices increasing to 27%, up from annual average of 16%.
Industrial investments made up 13% of the catalogue, compared to an average of 7% in the year to date, and the sector saw strong demand, with 82% of lots in this sector selling.
Yields for well-let, grade A retail investments moved in to 6% from an annual average of 6.3% and mid-range, grade B retail remained unchanged at 8.2%. Overall retail yields, including multi-let buildings and parades, moved out slightly to 7.9% from 7.6%.
Duncan Moir, Partner & Auctioneer, commented:
“It was a buoyant room, with strong competition in a good number of sectors. The private investor clearly has deep pockets. There remains some price sensitivity in secondary areas, but the sale levels for better locations are very well supported.”
Allsop’s next commercial will be held on 7th February 2017.
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.
For details visit www.allsop.co.uk
- Where a guide price (or range of prices) is given, that guide is the minimum price at which, or range of prices within which, the seller might be prepared to sell on the date at which the guide price, or range of prices, is published.
- The reserve price is the minimum price at which the property can be sold.
- Both the guide price and the reserve price may be subject to change up to and including the day of the auction.
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