On Monday 27 March, Claridge’s played host to a room full of buyers at Allsop’s latest commercial auction, where sales totalled over £87m at a clearance rate of 84%. A total of £45.8m transacted at £1m or more.
George Walker, Auctioneer and Partner at Allsop, commented: “The market was buoyant and the day was dominated by the larger lots. Appetite from domestic and overseas private investor for well-let assets across all sectors was very strong and, with the Bank of England recently upgrading its economic forecasts, we see this demand continuing to strengthen.”
Retail parades in London were as popular as ever, such as lot 96 at 22/24 High Street in Wood Green, a freehold shop and residential investment, which sold to a London buyer for £2.45m (4.7% net).
A specialist medical fund bid against private investors for lot 87, the Lawson Road Health Centre in Norwich, ultimately paying £2.9m (5.2%).
There was high demand for the leisure sector, with lot 83, a McDonald’s by the M1 in Chesterfield, selling for £1.64m (5.1%) to a high net worth individual who is a regular buyer at auction.
The auction market appealed to many sellers who had properties on the market prior to the launch of the auction catalogue. Over £15m worth of sales were transacted as a result of the combined efforts of pre-marketing and the auction contract, with the benefit of bringing certainty to the seller and buyer on the day of the auction. For example, lot 101 – an industrial investment totalling almost 180,000 sq ft in Halifax – sold to a private UK based Propco at £4m having previously been on the market.
Trading activity in the auction room was also evident. One example, Lot 27, The George Shopping Centre in Grantham was bought at auction within the last 18 months. With over 45 well managed lettings now in place, the lot went under the hammer yesterday for £2.7m, an increase of over £500,000 since it was last sold.
Overall, A grade retail yields remained constant from the February at 5.6%, and B grade yields sharpened to 7.8% from 8.8%.
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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