News | Commercial Auction

Allsop’s first auction of the year raises over £30m and sees high interest in sale of Coventry shopping centre

  • February auction results in the sale of 42 lots, raising £30.3m
  • 9 lots sold for £1m+
  • Lot 19, West Orchard Shopping Centre in Coventry, sold at £4.85m following competitive bidding

Allsop’s February commercial auction, its first online commercial auction of the year, raised £30.3m with 42 lots sold and a success rate of 80%. The latest auction was marked by a higher than usual number of registrations, with 237 buyers registering to bid compared with the 2020 average of 166, showing growing appetite for secure assets amidst ongoing economic uncertainty and low interest rates.

Buyers were particularly keen to secure some of the best-let assets presented in the catalogue, including a portfolio of six Santander banks (lots 1,3,122425, and 27) which sold at an average yield of 5%, and two freehold buildings let to Boots (lots 2 and 11), which were subject to fierce bidding, demonstrating unwavering demand for reliable income streams.

George Walker, Partner and Auctioneer at Allsop, said: “Given the growing concerns about the prospect of negative interest rates, our February auction saw intense competition for solid income producing assets, showing that investment decisions are looking beyond the pandemic to the long term.

“At the other end of the risk spectrum, the sale of the West Orchard Shopping Centre in Coventry City Centre at £4.85m after 12 months of marketing, saw interest from over 100 potential buyers. This auction was a strong start to what we expect to be a busy year”.

Some of the key highlights included:

  • Lot 19, West Orchard Shopping Centre in Coventry, sold at £4.85m. The shopping centre, set over six floors, comprises 219,503 sq. ft with a 563-space city-centre car park. It is partially let to Marks & Spencer PLC on a long lease, expiring in 2087 (NIY 46%)
  • Lot 7, a freehold dental practice in King’s Cross, let at £32,500 per annum, which sold at £780,000, reflecting an NIY of 3.95%
  • Lot 28, a Peterborough-based health centre let to the Secretary of State for £86,000 per annum, which was sold at £1.37m, reflecting an NIY of 5.9%

The next online-only commercial property auction will take place on 23rd March.

 

If you are thinking about selling a commercial property at one of our forthcoming auctions, or would simply like some advice, please do not hesitate to contact

jonathan.wright@allsop.co.ukmark.gower@allsop.co.uk or call +44 (0)20 7543 6780

Or complete our contact form with your details and property information and one of our partners will contact you.


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