Allsop’s first commercial sale of 2011 raised £48.5 million with a softer than usual overall success rate of 67%. The sale rate in London and the South East achieved 78% compare to 50% in the regions. This reflects a clear geographical division developing and a continued shift of market sentiment to quality and away from risk.
Other factors remain the lack of debt in the market, perception of over-rentedness in some sectors, exposure to empty rates in buildings with early reversions and tenant weakness.
The auction highlights included:
£29m retail investments
The largest retail was lot 75, a freehold retail unit on Shaftesbury Avenue, sold at £2.53m (5.6%) (Guide £1.9m)
Multi-let, corner building opposite Borough Market, Southwark Street, sold £1.63m (6.7%) (Guide £1.4m)
A parcel of 7 lots with 6 succesfully sold, raising £6.225m for private investor at average yield of 5.6% (net)
£8.4m Leisure Investments
The largest leisure investment lot was lot 64, Sofra in St John’s Wood, which sold at £1.8m. Leaseback to Enterprise Inns plc. 4.99% niy
Enterprise sold 7 from 11 offered raising £7.33m
Other notable vendors
A-grade retail has improved slightly to around 5.6% net – from 5.7% net in Dec 2010.
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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