Confidence returns as Allsop’s June commercial auction raises second highest total since the pandemic began

• Market confidence and demand for mixed-use and industrial investments helped to drive June sale to second highest total raised since the pandemic began [March 2020] at £61.5m
• June commercial auction saw the sale of 86 lots, reflecting a success rate of 78%
• Cash rich investors demonstrated their confidence in retail, with £47.4m of retail property sold – reflecting 77% of all investments
• 15 assets sold at £1m+
• Circa 337 lots have sold so far this year, raising £228m at a success rate of 88%

George Walker, partner and auctioneer at Allsop, said: “Despite the announcement of the lockdown extension the evening before June’s auction, we achieved our second highest total on the day since the pandemic began. The total raised was also notably higher than our June 2020 sale which raised £22.5m. Market sentiment is very positive at the moment, providing vendors with a great opportunity to sell.

“On the day, there was plenty of competitive bidding, with mixed-use and industrial properties keenly competed for, as were value-add opportunities and assets offering long income. Investors demonstrated that confidence and liquidity in the retail sector remains, with retail investments making up a total of £47.4m of all assets sold.”

The largest investment sold on the day was lot 23; a parade of four shops and ten flats with development potential in Haywards Heath, West Sussex. It sold at £3.305m (5.3% NIY). Also sought-after, was lot 46, a multi-let industrial estate in Knaresborough, Yorkshire, part-let to Myers Building Supplies. It sold for £2.86m (7.2% NIY).

A portfolio of six regional banks located across the country and all let to Santander, sold for £4.32m, while a portfolio of 13 properties let to Boots sold for £6.32m, an average of 6.1% NIY.

Further highlights include:

• Lot 20: A parade in Harlow comprising nine retail units and 12 self-contained flats. Tenants include Natwest Bank. Total rent achieved is £244,250 p.a. Sold for £2.91m (7.85% NIY)
• Lot 39: Two well located shops with offices above and planning consent for ten flats in Epsom. Total rent generated of £155,800 p.a. Sold at £2.4m (6% NIY)
• Lot 9: A shop, office and car park investment in Hillingdon, London, let to Enterprise Rent-A-Car UK at £70,000 p.a.  Sold for £1.4m (4.7% NIY)
• Lot 34: A retail warehouse in Bristol let to Majestic Wine at £70,000 p.a. Sold at £1.032m (6.4% NIY)
• Lot 67: This lot in Crawley failed to sell in the September 2020 auction and comprises a shop let to British Heart Foundation with seven flats at a rent of £167,840 p.a. Sold at £2.05m (7.8%) NIY)

The next commercial property auction will take place online on 20 July 2021.