Allsop has released its February commercial auction catalogue, which contains 144 lots and has the potential to be the highest value February commercial auction for five years.
London and the South East predominates and the average lot size of the top 20 lots offered has increased to £2,500,000 compared to an average of £1,600,000 in the last sale in December. Overall, there are 30 lots included over £1m, 7 of which are guided at £2m or more.
The largest item in the auction is lot 87, a freehold office and residential investment that is home to The Lady magazine at 39-40 Bedford Street, Covent Garden. Being offered with a rent of £170,000pa and a considerable development opportunity in the heart of London’s tourist scene, the property has a guide price of £12.5M to £13M. Comprising 11,140 sq ft in all, there is already interest from the restaurant sector, and this should appeal to investors from the UK and overseas seeking a top-quality trophy asset for their portfolio.
With 51% of the catalogue representing London and the South East, two other attractive opportunities in the region include lot 82, a freehold shop and residential ground rent investment located in Richmond town centre. Situated within 500m of the Richmond Overground and Underground Station, the property is currently let to Jo Malone until 2020. The guide price is £1.3M- £1.4M with a gross yield of 6.12%.
Another London-based opportunity is lot 38, a freehold restaurant located in Brixton with a guide price of £2.25M. The property is currently let to Oaxaca Limited on a lease expiring in 2039. With a rent review to take place this May, the current rent stands at £135,000pa.
Other examples of the largest lots that will appeal to the demand for alternatives and mixed use assets include lot 81, a Mercedes dealership in Weston-super-Mare, let at £202,905pa at a guide price of £2,450,000. Another mixed use item is lot 94, in the West Midlands. The parade of shops currently includes tenants such as Costa, Co-op and Lloyds Pharmacy, let at £439,980 pa in total plus four vacant flats.
George Walker, Partner and Auctioneer, Allsop says “We finished 2018 with a strong run of sales from the December auction and our clients have responded to this liquidity with a broader offering of high-quality assets than we have seen for over five years. Given the right asset mix and pricing, the private investor seems to be investing almost in spite of the uncertainties from Westminster. Unlike the stock market, commercial assets offer solid long-term returns and, with interest rates expected to hold steady, these high-yielding assets appeal”.
The auction will take place on February 5th at The Berkeley Hotel, Wilton Place, London SW1X 7RL. The catalogue can be viewed online.
Notes to editor
About Allsop auctions
Allsop run the largest property auction departments in Europe through two highly experienced residential and commercial teams and is the UK’s number one auction house by transactions. We offer a wide range of lots covering residential vacant and investment properties, ground rents, land and development opportunities and secondary commercial lots. A minimum of six commercial and seven residential sales are held every year.
- Where a guide price (or range of prices) is given, that guide is the minimum price at which, or range of prices within which, the seller might be prepared to sell on the date at which the guide price, or range of prices, is published.
- The reserve price is the minimum price at which the property can be sold.
- Both the guide price and the reserve price may be subject to change up to and including the day of the auction.
Allsop is an independent property consultancy with a market-leading reputation for high quality service and integrity, covering the UK from our offices in the West End, the City, Leeds and Brighton. In addition to our position as the UK’s largest and most successful property auction house, we offer an extensive range of services for residential, commercial and mixed use property.
We have the people, the skills, the experience and the drive to maximise value for our clients in any given market and like to do business in our own distinctive Allsop style – open, friendly and honest. Clients appreciate this, which is why so many stay with us over the long term.
In an unpredictable world, Allsop remains a reassuringly constant source of market knowledge, insight and expertise.
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