Allsop raises £96.4 at latest commercial auction as investors show confidence in UK commercial real estate amidst rising inflation

Of the 106 lots sold, 34 commanded a price of £1m (with an average price of £1.95m)

The largest lot of the auction was an office and warehouse space in Bognor Regis, sold prior at £4.3m

Allsop raised more than £96m in its May commercial auction, the highest total achieved in a property auction in the UK since the start of the year.

Of the 123 lots on offer, 106 were sold to private investors, demonstrating ongoing appetite for high-yielding opportunities that help offset inflation.

Buyers were able to choose from a variety of assets across the country, which included retail and pharmacy investments, offices and mixed-use schemes. Retail investments saw especially high levels of interest (representing 73% of all lots sold), following the announcement of Morrisons’ takeover of McColls and the positive signals that sent to the investment community.

George Walker, partner and auctioneer at Allsop, said:

“As we’re approaching the end of H1 2022, marked by uncertainty in the financial markets and geopolitical turbulence, private investors continue to see commercial property as an attractive asset class with the potential to generate high yields and long income, as evidenced by the results of our latest, record-breaking auction.

“The virtual auction room saw the arrival of new market participants as well as returning overseas buyers, who continue to view the UK property market as a reliable destination to deploy capital during turbulent times. We look forward to welcoming new and existing buyers to our next auction, which will bring opportunities for those seeking not only to safeguard, but also grow their capital.”

Key highlights include:

  • Lot 24 – a vacant freehold industrial warehouse and offices in Bognor Regis, spanning 92,417 sq ft, which sold prior for £4.3m, making it the largest lot of the auction
  • Lot 14 – a shop (let until 2033 with no breaks) with two self-contained flats above in Islington, London, which sold at £3.6m (NIY 4.96%), making it the highest-value lot to sell on the day
  • Lot 18 – a parade in Epsom comprising shops, a nightclub and a former gym, with total rents of £128,000 per annum as well as 10,201 sq ft of vacant space, which sold at £2.45m (NIY 4.9%)
  • Boots portfolio – a total of 15 pharmacies let to Boots across the country, sold at a combined price of £21.3m, with leases ranging from three to seven years)

Allsop’s next commercial property auction will take place online on 13 July 2022.

Leave a Reply

Your email address will not be published.