Allsop Commercial Auction averages over £1m per lot as £47m is raised

• 40/41 Pall Mall sold at £10.8m in competition – the largest lot sold for 2 years
• 17 lots sold for over £1m
• Demand for the best stock drives yields down to 5.5% for a Gails Bakery in Gerrards Cross

The June auction saw the sale of 48 lots, with buyers seeking out the best quality assets in Central London and let on good leases in the regions.

The sale of 40/41 Pall Mall was clearly a highlight of the day on behalf of Liquidators. As always the auction deadline brought the interest to a head and bidding drove the price above the guide to £10.8m,  which represents nearly £1200psft, but as importantly for the seller, got it sold in ten weeks.

Outside Central London, another highlight was a portfolio of four KFC drive thru units, which were all let on long leases, up to 2043 with the KFC GB guarantor. Appetite was strong across the board, with a number of bidders switching from their preferred lot to one of the others as they sought exposure to this popular sector with a well know tenant. The demand drove the average yield down to 6.2% off the average price of £1.32m.

The expanding Gails Bakery chain also delivered another peak of demand in Gerrards Cross, with a bakery and two maisonettes all let on a long lease at £72,500pa selling at £1.24m, a market leading 5.5% in this very popular commuter town.

These peaks of demand in Central London and the regions confirm that the private investor is waiting to compete for the better quality assets at auction, to improve their portfolios and build strong income. These yields, 9 of which were 5% or below simply don’t allow financing but buyers are content with adding real quality to their portfolios as they have faith in the diversity of their assets.

George Walker Partner and Auctioneer - Allsop

Highlights of the day:

Lot 27 – 40/41 Pall Mall, sold at £10.8M, £1200psft

Lot 6 – KFC Deptford, sold at £1.36M 5.49%

Lot 8 – Gails Bakery and maisonettes, Gerrards Cross, sold at £1.24M 5.5%

Allsop Auction Teams have raised £431M in the year to date to date with the next commercial auction on July 17th.

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: https://auctions.allsop.co.uk/selling-at-auction

About Allsop

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.