Despite a backdrop of political uncertainty, undeterred private investors rallied to help deliver a £53m total at March’s commercial auction. Cash rich investors bid competitively for well located, sought-after assets, helping Allsop to achieve a 76% success rate.

However, the largest lot of the day was a retail asset; lot 62, a 35,648 sq ft supermarket investment let to the Co-operative until 2022 with the potential for redevelopment or a restructuring of the lease, sold at £3.85m, 6.5%.

On the day, approximately £32m – more than half of the value of all assets sold at March’s auction were retail investments in an encouraging sign for the sector. Retail assets seeing the most demand were those let to convenience stores, supermarkets and charity shops.

One of the most hotly fought-for lots on the day was lot 10, a shop investment let to Specsavers in a town centre location in Hinckley, Leicestershire. Guided at £390,000, it sold at £636,000, 4.7% net – almost double the guide.

London lots are still seeing the highest demand from buyers, for example, lot 57, an attractive office building in Marylebone let to the London Business School, achieved the second highest sale price of the day, at £3.17m, 3.8%. Its sale of 20% above the guide, reflected a capital rate of £1,006 psf – reinforcing the demand for well located London investments.

Demand for alternative assets in the room was strong. Across the catalogue 20 alternative assets went under the hammer with lot 74, one of three NCP car parks in Newport, all let on leases expiring in 2037 and generating £101,328pa, sold at £1.9m, 5% net.

Lot 76, a gym and Leisure investment located in Walsall, let to Greenwich leisure Limited until 2039 with a fixed rental uplift in 2024, saw significant interest throughout the pre-auction marketing period and sold prior, achieving 7% net.

George Walker, Partner and Auctioneer at Allsop said: “This auction clearly demonstrates that investors are largely undeterred by the political chaos in Westminster and are still in the business of selling and buying property assets, albeit, at the right price.”

“On the day, we also saw two portfolios sold as individual investments and achieved much stronger prices as a result. Ultimately, the market is not prepared to wait until we have final and clear direction on the outcome of Brexit and investors will continue to compete for the right assets.”

The full results can be viewed on the Allsop website. Allsop’s next commercial sale will be held on Monday May 20th 2019 at The Berkeley Hotel, Wilton Place, London SW1X 7RL.


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.

Guide prices:

  1. 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.
  2. The reserve price is the minimum price at which the property can be sold.
  3. Both the guide price and the reserve price may be subject to change up to and including the day of the auction.

Visit: http://www.allsop.co.uk/our-services/auctions/selling-at-auction/

About Allsop

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.

Visit: www.allsop.co.uk

Contact

For further information or supply of images

Newgate Communications on 0203 757 6890 or allsop@newgatecomms.com