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Allsop’s sixth and final Commercial auction of 2010 was held on Tuesday 7th December at The Park Lane Hotel on Piccadilly.  We offered 103 lots and at the time of writing have sold 82 lots raising approximately £58 million with a success rate of 80%.

The initial 80% success rate is the highest auction day result we have had since May.  In total we have sold 582 lots this year (123 of which were for £1m or more) and raised £382m, with an overall success rate of 83.1%.  In 2009 we sold 615 lots and raised approximately £450m with a combined success rate of 87.5%.  These continued high volume sales provide us with an unrivalled knowledge of buyers currently in the market.

The auction room was again well attended.  We were pleased to see a number of familiar faces as well as a high proportion of first time private investors, all seeking a better return on their cash.  Retail and London based properties, as well as secure long dated income all continued to attract particularly competitive bidding leading to an average overage on reserve of 11.5% for lots sold under the hammer. In summary, the market continues to be strong for good quality lots although the more secondary lots will also sell if priced correctly.

Some notable highlights from our December Auction include:

20 Lots sold over £1 million (24 in October). Twice as many as our nearest competitor.

Average lot size £707,317 (£657,910 in October).

Largest lot was Lot 73 – Cornhill, EC3.  Shop & Office Investment let at £126,745pa.  Sold £1.995m (6%).

39 Lots achieved yields at or below 6%, 10 of which were at or below 5% (46 lots in October, 20 below 5%).

9 first class public house investments on behalf of Enterprise Inns plc sold reflecting an average lot size of £1.1m and 6.3% (£1.27m & 5.96% in October).

14 Bank investments sold reflecting an average lot size of £691,321 & 5.46% (19 Banks, £912,368 & 5.47% in October).

Lowest bank yield was Lot 1 – Camberwell Green.  Let to Lloyds TSB Bank at £54,000 pa until 2021.  Sold £1.16m (4.4%).

25 out of the 27 London Lots offered were sold.

Lot 85 – Shaftesbury Avenue.  Two Shops with three flats above.  Total let at £89,177pa. Guide Price £1.2 to £1.4m.  Sold £1.76m (4.76%).

3 Retail Warehouses let to Mole Valley Farmers Ltd in Basingstoke (Lot 3), Romsey (Lot 11) and Winchester (Lot 72) all sold for a total of approximately £4m (6.5%).

3 properties let to the BBC sold.  Lot 76 (Gloucester) £1.04m (5.82%), Lot 78 (Truro) £850,000 (6.23%), Lot 99 (Swindon) £1.4m (6.3%).

The market knowledge we gather through our sales is invaluable, particularly when providing sellers with accurate advice on pricing.  Moreover when our database of buyers is combined with the unparalleled market exposure we can offer through our website (approx 250,000 registered users) it is a very powerful marketing tool.

Notes to editor

Allsop is an independent property consultancy with a market-leading reputation for high quality service, integrity and innovation. We are also well known as the UK’s largest and most successful auction house.  Our success is built on over 100 years’ experience in commercial and residential property consultancy and sales.