Allsop Commercial Auction defies ponderous market and raises £61.5M

• March auction is largest for 18 months showing the cash that is in the market ready to buy
• 15 lots sold for over £1m, including the largest lot sold £4.34M (7.37%), a Nuffield Health Gym in West Byfleet for a fund
• Average price of £1m+ lots was £2,434,000

The wider market is yet to show real signs of competitive tension despite the fall in inflation, so it is encouraging to see so much activity at auction, with the sale of 77 lots at a clearance rate now standing at 79%.

The focus on larger sales continues, as sellers seek to get these often trickier assets exchanged and completed in good time which is what the auction contract achieves - the sale of four similar Shopping Centres is endorsement of the process.

The Shopping Centres raised a total of £12.4m, they are all multi let with dozens of tenants and significant service charges, so the clarity of an auction deadline sets a moment in time for buyers to commit, Allsop have sold eight in the last six months on this basis.

The usual mix of lots was sold from London to the Cotswolds, with a focus on retail which comprised 56% of the sale, typically as mixed-use assets, alongside industrial investments, offices and alternative assets which included a portfolio of Vet Centres let to IVC Ltd, five sold at an average of 6% net.

Highlights from the sale include:

Lot 10 – Barkingside, a parade of 10 flats and 16 flats sold at £3,900,000

Lot 24 - Emsworth, Hampshire let to Independant Vetcare Ltd at £39,667pa which sold at £648,000, 5.8%

Lot 35 - Stow on the Wold, a shop and 9 flats sold at £3,250,000

George Walker, Auctioneer and Partner at Allsop commented:

“This is a strong end to the financial year in a market which is still lacking in conviction, but the Private Investor is always happy to back themselves to get ahead of the market when presented with quality stock and added value opportunities.

There is a feeling that a surge in demand will arrive once the first interest rate comes, but our results are already showing some strong prices for the best quality lots”

Allsop’s next Commercial auction is May 2^nd 2024