Allsop’s February commercial auction has raised a total of £66.6m, greater than the total recorded at February’s sale last year (£64m), bringing the rolling 12-month total raised to £620m.
The strong result was achieved amidst a volatile 48 hours which saw the world’s financial markets stutter. However, the volatility did little to dampen investor enthusiasm in the room. The auction’s highest value lots were the most sought-after, with 21 lots sold for over £1m.
The highest value lot of the day, Lot 76 parade in Reading comprising five shops and development potential to create eight flats above, sold at £3.5m, 6.75% – 18% above the most recent valuation. Lot 75, a parade of 16 shops on Kennington Road in London, on the doorstep of the Oval cricket ground, sold to an overseas buyer at £3.37m, 7.1%. Transactions by overseas investors accounted for more than 10% of the total lots sold.
Assets which offered the longest income were some of the most highly contested of the day. For example, Lot 37, a freehold bank investment let until 2031, was in demand among investors in the room. Located in a prime town centre location close to Tesco and Superdrug in Ayr, Scotland, it sold at £1.56m.
The long-term income on offer at a number of regional solicitors also proved popular on the day. A portfolio of seven solicitors’ offices in the North West which were all let on new 15-year leases with RPI increases, were recently bought as a package and quickly sold at a margin of circa 20% above the original price. Lot 96, located in Bury, was the largest asset of the portfolio. Let at £47,400pa, it sold after tremendous competition at £905,000, 4.9% net.
George Walker, Partner and Auctioneer, said:
“Investors shrugged off the temporary market volatility to purchase good quality assets in prime locations.
“Well-let lots were among the most highly contested in the auction room. The vigour of the bidding reflected the demand for the long-term nature of these investments, which still deliver a more stable income than equities.”
Notes to editor
About Allsop auctions
Allsop run the largest property auction departments in Europe through two highly experienced residential and commercial teams and is the UK’s number one auction house by transactions. We offer a wide range of lots covering residential vacant and investment properties, ground rents, land and development opportunities and secondary commercial lots. A minimum of six commercial and seven residential sales are held every year. Visit: http://www.allsop.co.uk/our-services/auctions/selling-at-auction/
Allsop is an independent property consultancy with a market-leading reputation for high quality service and integrity, covering the UK from our offices in the West End, the City, Leeds and Brighton. In addition to our position as the UK’s largest and most successful property auction house, we offer an extensive range of services for residential, commercial and mixed use property.
We have the people, the skills, the experience and the drive to maximise value for our clients in any given market and like to do business in our own distinctive Allsop style – open, friendly and honest. Clients appreciate this, which is why so many stay with us over the long term.
In an unpredictable world, Allsop remains a reassuringly constant source of market knowledge, insight and expertise.
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