News | Commercial Auction

Allsop commercial auction raises over £43m as increasing appetite for solid return persists

  • September online auction raised £43.3m with 71 lots sold
  • Largest lot (a freehold retail parade in Orpington) sells at £3.3m, beating pre-lockdown price
  • 12 lots sold at £1m or above

Allsop’s September commercial auction, their fifth commercial auction this year to have taken place online, raised £43.3 million, with 71 lots sold. The online auction was held on the day the UK government announced a new series of COVID-19-related restrictions, further adding to the uncertainty, and resulting in an overall success rate of 77%.

Over the course of the auction, 1,529 bids were placed for the 92 lots offered. The auction was marked by strong competition for particular lots, with the margin above reserve for some surpassing 50%.

George Walker, Partner and Auctioneer at Allsop, said: “As cash buyers continue to act with caution given the uncertain market, this week’s auction saw a sharp focus on opportunities offering long-term development gains and secure rental income in favour of short-term yields.”

“We’ve seen a continuation of the trend observed at our previous auctions this year which is strong demand for sustainable income streams. Another asset class in high demand is bigger lots where buyers can add value in the longer-term and which offer wealth protection and reassurance in a cautious market.”

One example is lot 5 in Hampstead, a barber shop with three flats above sold at £2,015,000 (4.5%), 55% above the reserve price.

All three of the larger lots above £3m offered long-term value, and one particularly desirable lot was sold ahead of its pre-lockdown bid, as follows:

  • Lot 34 Worthing, an office investment with development potential sold for £3,065,000 (6.9%) (£129.63 per sq. ft)
  • Lot 52 Streatham, an attractive freehold bank and office investment with potential for future development sold at £3,250,000 (5.5%)
  • Lot 30 Orpington, a freehold retail and residential parade which beat the pre-lockdown price by £50,000 selling at £3.3m

Retail assets comprised 69% of lots sold, with a wide margin spread ranging from 4.6% (in the case of lot 15, a long-lease Co Op in Honeybourne at £1,205,000) to 18% for a short let retail parade in Wrexham, Clwyd, sold for £600,000 (lot 64).

Allsop’s next commercial auction will be held online on 3rd November.


Related Insights

Allsop Unveils Final Commercial Auction Catalogue of 2024
News 26/11/24

Allsop Unveils Final Commercial Auction Catalogue of 2024

Commercial Auction | Buying at Auction

Allsop has released its December auction catalogue , featuring 68 lots across the UK with 22 guided at £1m or more.

Podcast: Two auctions, the Budget and the Trump result - 10 days unravelled!
Podcast 19/11/24

Podcast: Two auctions, the Budget and the Trump result - 10 days unravelled!

Residential Auction | Commercial Auction

In this episode of the Allsop Propchat we delve into some of our recent sale results, and comments from buyers and sellers to...

Allsop raises nearly £88m across two days of auctions
News 11/11/24

Allsop raises nearly £88m across two days of auctions

Buying at Auction | Selling at Auction

Allsop, the property consultancy and the UK’s largest property auction house, raised £87.8 million in total over a two-day pe...

Allsop releases November commercial auction catalogue with 100 lots on offer
News 22/10/24

Allsop releases November commercial auction catalogue with 100 lots on offer

Commercial Auction | Auction

Allsop’s latest commercial auction catalogue features 100 lots across the UK, following success of its September commercial a...