George Walker, partner and auctioneer at Allsop, said: “We have raised £15m from the sale of shopping centres across six auctions in 2021 having attracted interest from non-retail investors, drawn to the diversified yield and the value-add opportunities this asset type is able to offer. Worth noting that this auction marks Allsop’s first shopping centre sale to an overseas buyer this year. This continued depth of demand may herald the bottom of the retail market as businesses and high streets open up and investors regain confidence.
“Overall this was a strong auction – buyers clearly indicated their intention to put the pandemic behind them and move on.”
The largest investment sold on the day was lot 33 in Kidderminster, a 102,000 sq ft shopping centre with a 370-space car park which was strongly competed for. Guided at between £2.75m and £3m, the investment sold at £3.8m (20.2% NIY).
Demonstrating the breadth of the market, the next biggest lot was a trade counter and office investment sold on behalf of a fund. Lot 32 in Salisbury, which generates a total rent of £191,600 p.a. and includes a vacant unit, achieved in excess of £3m (5.9% NIY).
Some of key highlights also include:
- Lot 9: A freehold takeaway with four flats within 150m of Farringdon Station, London. Sold: £2.42m (5.1% NIY)
- Lot 20: A parade in Harlow comprising nine retail units and 12 self-contained flats. Tenants include Natwest Bank. Total rent achieved is £244,250 p.a. Sold: £2.91m (7.85% NIY)
- Lot 21: A café and two-bedroom maisonette, plus advertising hoarding in Islington. Generates £51,040 worth of rent p.a. Sold: £970,000 (5% NIY)
- Lot 39: Two well located shops with offices above and planning consent for 10 flats in Epsom. Total rents £155,800 p.a. Sold: £2.4m (6% GIY)
- Lot 76: An attractive town centre Jack Wills shop in Guildford let on a rent based on 5% of turnover and expiring in 2022. Sold: £1.16m (capital value of £386 psf)
The next commercial property auction will take place online on 15 June 2021.