Allsop raised £57.7m at its first commercial auction of the year held on 7 February, with an overall success rate of 82% which is expected to rise further.
Investor demand for mixed-use assets in London and the South East was as strong as ever, as the sale started with two freehold shops with maisonettes close to Gants Hill Underground station, which both sold below 4.8% net, £472,500 and £453,000 respectively.
Highlights from the auction included an RPI linked convenience store in Chesterfield, Derbyshire let to Co-op Group (Lot 22) on a lease with no breaks until 2031. The investment attracted huge competition in the room and sold for £970,000 (4.8% net).
The sale included the break-up of a portfolio of well-let banks, three freeholds let to the Bank of Scotland plc until 2031 in Whitley Bay, Hillsborough and Galashiels. Private investors bid competitively, which resulted in an average yield of 5.35% net, realising £1.345m in total.
The average A grade retail yield dropped from an average of 6.0% (net) in December, to 5.6% (net) with these results.
One of the most popular lots – lot 85 in Epsom – was bought at auction in October 2001 at £725,000 and sold this week for £1,680,000 (4.8% net).
George Walker, Partner and Auctioneer, commented:
“The noticeable trend from this week’s auction was the tremendous demand for retail investments with good tenants and a long lease. Whilst investments such as the two in Gants Hill illustrate the competition for mixed-use retail lots in London and the South East, demand isn’t limited to primary markets as there is also strong interest in retail investments in secondary locations provided the assets tick the boxes of covenant and length of lease. Noticeably, a number of lots that sold had been previously marketed by private treaty and the auction process converted hesitant interest into sales.”
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
1. 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.
2. The reserve price is the minimum price at which the property can be sold.
3. 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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