An enthusiastic market and firm bidding raised Allsop’s sales total to £102 million at a success rate of 83%. This result brings their current total for the year to over £378m, after five auctions.
210 investments were on offer over the two days, with 22 lots selling for over a million. The South East continued to dominate, accounting for 37% of the sum raised, with over 90% of lots offered in the region being sold.
The largest lot of the day was a mixed retail and residential building in Wood Green, London N22, in both the sector and region where there is undoubtedly the strongest demand; it sold for £2.55m (5.9% NIY), ahead of guide price by 13%.
Another example of the strength in the South East was Lot 75 in Streatham, London SW16, a retail investment let to Tesco Stores Ltd until 2022 at £81,759.32 pa. The property attracted a great deal of interest and was sold for £2.09m reflecting a 3.91% initial yield, some 23% ahead of the guide price.
This auction also saw 11 industrial properties selling, the most so far at one auction this year. Lot 107 in Rugeley was particularly interesting; a modern scheme of 24 units, it generated some very competitive bidding, eventually selling for £1.26m (7.5% NIY and £58 psf capital), over £250,000 above the guide price.
Several properties previously bought at auction, came back to the market, generating short term profits for trading vendors and as such demonstrating continued strength and confidence in the market.
An example of this would be the McColl convenience store in Blaenau Ffestiniog, which had been sold after a regional auction in February 2015 at £475,000. The property was resold in our October sale at £630,000.
Other highlights of the auction include:
Lot 80, Harrogate – A boutique 4-star hotel ground rent investment, let on a new 200 year lease at a geared rent of £125,000 pa. SOLD £2.35m (5.32% NIY) to a London investor, which continues the theme of Investors buying into the regions when given the right quality income.
Lot 84, Reading – SOLD £1.11m (5.41% NIY) bought by a Private Investor who outbid a Fund (also a special purchaser), paying 5.1% for the freehold, let on a new lease to a restaurant chain “Wolf Italian” at £60,000pa.
Lot 86, Hertford – Attractive post office and hotel investment. Total Current Rents Reserved £73,317 pa rising to a minimum of £90,317 in 2020. SOLD £1.3m (5.64% NIY)
Lot 141, London SW15 – An attractive shop investment, in Putney. Let on a long lease expiring in 2068 at £40,000 pa. SOLD £1.2m (3.33% NIY)
Lot 148, St Neots – A Town Centre bank investment let to HSBC Bank plc until 2033 at £100,000pa. SOLD £1.68m (5.95% NIY)