- Allsop’s first commercial auction of the year raises £34.7 million from 57 lots
- Auction saw double the number of new buyers than at pre-pandemic levels – nearly one third had never bought at auction before
- Retail continues to be dominant sector, accounting for 74% of sales by value
Leading UK property consultancy Allsop kicked off 2022 with a 91% success rate in its February auction, raising £34.7 million from 57 lots, with nearly a third of successful buyers having never purchased at auction before – nearly double the proportion before the pandemic.
32% of lots were purchased by first-time auction buyers, up from 17% in 2019 and 20% in 2020. Meanwhile, the average lot size in Allsop’s February auction was up 19% on December’s average as more than a fifth of lots were sold for over £1 million.
Having raised £584 million in 2021, Allsop’s first commercial auction of the year was once again dominated by retail investments. In total, retail accounted for 74% of the value of lots sold, including the sale of a portfolio of Boots’ pharmacies.
George Walker, Partner and Auctioneer at Allsop, said: “It was encouraging to see a wide variety of new buyers entering the market – many of whom were bidding competitively across multiple lots – as well as special purchasers including tenants and neighbouring owners, demonstrating the wide appeal of our auctions. The growth in buyers purchasing at auction for the first time highlights how vendors and buyers are increasingly attracted to auctions as part of their acquisition strategy. As this trend continues, we will likely see more vendors adopt a hybrid approach of auction and private treaty to secure the best deal – a trend we are already seeing with growing frequency.”
Key highlights include:
- Lot 19 – the largest lot sold on the day was a retail warehouse in March, Cambridgeshire, that is fully let to B&M Retail Limited at £161,000 per annum and sits on a 1.8 acre site sold for £2.712 million (5.6% NIY).
- Lot 35 – a Grade II mixed-use investment in Milton Keynes, comprising a restaurant and flat, offices and yoga studio that sold for £1.495 million (7.8% NIY).
- Lot 1 – a retail unit in Wimbledon, with a large three bedroom maisonette above, which is entirely let until 2025 at £33,000 p.a. It sold for £1.082 million (2.9% NIY).
- Boots Portfolio – a nationwide portfolio of 13 pharmacies let to Boots with between three years and eight years term certain. Sold 12 at a combined price of £6.3 million (average NIY: 6.1%).
Allsop’s next commercial property auction will take place online on 24 March 2022. For more details on how to sell or buy at auction click here