Allsop’s October auction has raised a total of £148.5m, the highest total recorded by any UK commercial auctioneer for more than a decade and the third highest result on record.
The record result was driven by the demand for high value lots – 40 sold for £1m or more and 12 that sold for more than £2m.
October’s result demonstrated the breadth and demand for larger, good quality real estate assets in strong locations. The three highest performing lots made a combined total of £16.49m and were drawn from three different sectors – retail, a mixed-use parade and London industrial.
This included lot 105, a high street retail investment let to Marks and Spencer until 2027 in the heart of Bishops Stortford sold at £7.275m. Lot 201, a parade investment comprising of 21 shops and uppers in Smethwick, the West Midlands sold at £4.47m, and an industrial investment in London, lot 9, sold prior at 3.5%.
Retail still dominated with 80% of lots sold coming from this sector but at a spread of yield in some cases of up to 10% between the best and more secondary assets. There was tremendous depth of demand where the real estate was the overall driver, regardless of the length of the lease.
Two examples illustrate this with 3.65%, £1.67m being achieved for lot 92, a long-let (2045) Prezzo in Buckhurst Hill and yet a sharper yield, 3.5%, £1.45m achieved for lot 197, a short let Prezzo in Hertford.
Competition was stiff in the multi-channel auction room; the biggest online sale was lot 112 an industrial investment in Castleford, west Yorkshire sold at £2.81m.
George Walker, Partner and Auctioneer, said: “The market is of course driven by buyers seeking yield on their cash which typically chases the best let assets, but what came through clearly was where the inherent real estate is strong enough, investors have not been afraid to bid very strongly and this has been reflected in some of the prices achieved at October’s auction.
“This record result defies a lot of the negative chatter about the market and demonstrates that the market and depth of spend is there across the commercial spectrum.”
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.
For details visit www.allsop.co.uk
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