Despite the negative headlines, retail investments were among the best performing assets to sell under the hammer at Allsop’s July commercial auction as investors look for value, well-let assets or value-add opportunities. The auction raised a total of £72.3m with a success rate of 79% and 22 investments selling for more than £1m.
The largest asset from July’s auction catalogue to sell was lot 72, an attractive bank investment on Camden High Street, let to Lloyds Bank until 2022 with four self-contained flats, which sold prior to auction for more than the £5.5m guide, 4.5%. Located close to Camden Town London Underground station, the asset offers the potential to extend and redevelop the upper floors, subject to planning.
Lot 85, College Walk Shopping Centre in Rotherham also sold prior to auction in excess of the £3.5m guide. The shopping centre comprises 18 units with tenants that includes JD Sports, Subway and Warren James. It currently generates £528,250p.a. and is one of seven multi-let centres that Allsop has sold in the last 12 months.
On the day, the auction room was busy, with over 500 people attending throughout and 100 bidding remotely. Buyers were bidding competitively for either the best-let investments, particularly in the South Eastor for those with added value opportunities.
Of the retail investments, lot 11 (pictured), let to Boots in Berkhamstead sold at £3.2m, 5% net, and was the largest lot sold in the room. Lot 40, a newly let Co-op in Gateshead on a 15-year lease generating £67,500p.a., offered one of the lowest yields and sold at £1.18m 5.3%.
Buyers were also competing for alternative assets, with nine out of the ten Kwik Fit roadside assets selling for a fund, all let on leases expiring in 2031; they achieved an average of 8.8%.
George Walker, Partner and Auctioneer at Allsop said: “This auction brings our total raised for the year to nearly £300m which flies in the face of the political uncertainty and much talked about challenges facing high street retail. This strong result shows that there is tremendous liquidity in the market but buyers do have a great deal of choice and they are as informed as ever which puts an emphasis on correct pricing.”
The full results can be viewed on the Allsop website. Allsop’s next commercial sale will be held on 23rd October at The Berkeley, Wilton Place, Knightsbridge, 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.
- 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.
- The reserve price is the minimum price at which the property can be sold.
- Both the guide price and the reserve price may be subject to change up to and including the day of the auction.
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.
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