Allsop held their third Commercial auction of 2011 on Tuesday 17th May at The Park Lane Hotel on Piccadilly. 123 lots were offered and at the time of writing 93 lots have sold raising approximately £48.9 million reflecting a success rate of 75.6%.
So far this year a total of 254 commercial properties have been successfully sold through our auctions, raising approximately £154.5m, reflecting a success rate of 80%, with 47 properties achieving £1million or more. Our results compare favourably with those achieved by our competitors and the 83% success rate we averaged throughout 2010.
The auction room was surprisingly well attended with both a high proportion of new private investors and a number of familiar faces, all seeking a better return for their cash. Retail and London based properties, as well as secure long dated income, all attracted particularly competitive bidding. The results of those lots sold under the hammer showed the Grade A income achieved an average yield of 6.05% (6.7% in March) and the Grade B income achieved 7.4% (7.6% March), with an average overage on reserve of 10% for all lots sold under the hammer.
In summary the market remains strong for good quality lots with demand keeping prices at similar levels to those achieved at the height of the market. The more secondary lots remain challenging, although they will sell if priced correctly.
Some notable highlights from our May Auction include:
• 11 Lots sold over £1 million (15 in March).
• Average lot size £524,560 (£626,915 in March).
• Largest lot was Lot 71 – Brighton. Attractive Bank let to Lloyds TSB Bank Plc at £155,000pa until 2021 with a tenants break in 2016. Sold £2.76m (5.3%).
• 29 Lots achieved yields at or below 6%, 12 of which were at or below 5% (17 lots in March, 4 below 5%).
• 7 Bank investments sold reflecting an average lot size of £1,186,071 & 6.16%
• Lowest bank yield was Lot 2 – Sandbach. Let to Barclays Bank Plc at £23,000 pa until 2027 with a tenants break in 2022. Sold £490,000 (4.48%).
• All 19 Lots offered on behalf of receivers sold raising £8,173,500.
• A package of 11 Corals offered on new 16 year leases sold for a total of £3.75m reflecting 5.7%.
• 4 out of a package of 5 Funeral Parlours sold for a total of £1,422,000 reflecting an average 6.7%.
• Lot 68 Greenwich – Let to Gourmet Burger Kitchen Ltd at £82,500 pa rising to £87,500 pa. Lease expires 2031. Sold £1.32m (5.91%)
• Lot 69 Fleet – Let to Pizza Express (Restaurants) Ltd at £67,500 pa. Lease expires 2033. Sold £1.26m (5.07%)
• Lot 72 Berkhamsted – Attractive Estate Agency let to Knight Frank LLP at £52,500 pa. Lease expires 2028. Sold £930,000 (5.34%).
• Lot 73 Sutton – Attractive Bank let to Barclays plc at £130,000 pa. Lease expires 2026. Sold £2.46m (5%).
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.
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