Allsop’s May commercial auction was a good indicator of the health of the investor market post-election, with strong bidding in the room and keen competition for the larger London and SE lots, Allsop stormed to over £65 million with 84% sold.
The largest lot in the auction was Lot 95, COCKFOSTERS, A pub let to Mitchells & Butler, with guarantee, on a new 35 year lease at £220,000pa, which sold for 4million (NIY 5.2%).
13 other properties sold over £1m+
Duncan Moir, Partner & Auctioneer commented:
“From the rostrum, there was a very positive feel to the room, with bidders competing hard for their chosen lots, leading to a number of excellent results for our clients.”
He continued “The market has responded to the removal of political uncertainty with vigour, with many investors finding they had to dig deep to be successful.
Looking forward, positive economic data and continuing low interest rates supports the case for property investment and our auction room gives vendors unrivalled access to an increasingly hungry pool of buyers.”
Allsop’s regular Buyer’s Survey showed a wide geographical spread of buyers, similar to that seen in March, with 53% coming from outside the region in which the property they purchased was located (55% in March). There was no change in the high number of repeat auction buyers at 80%, but the number of buyers intending to invest again within the next 12 months increased to 83% (79% in March), along with the number of cash buyers (69% from 65% in March).
Highlights include:
Lot 1, ABBOTS LANGLEY – Lloyds Bank plc. Let at £20,000pa until 2021. Sold for £420,000 (NIY 4.5%) to a South East based Private Investor
Lot 6, RAYLEIGH – Bank of Scotland plc (t/a Halifax). Let at £66,500pa with rent review in 2018. Sold for £1.12m (NIY 5.6%) to a London based Property Company
Lot 22, CIRENCESTER – Modern office. Lessees include BAe Systems and Smiths Gore. Total current rents £146,064pa. Sold for £1.62m (£162 psf cap val) to a South East based Private Investor
Lot 89, NEWTON ABBOTT – Shop let to WH Smith plc and two floors of offices. Sold for £1.45m (NIY 8.5%) to a South East based Private Investor
Lot 92, LONDON, NW2 – Barclays Bank & six flats in Cricklewood, let at £146,350 pa. Sold for £3.06m (NIY 4.5%) to a London based Property Company
Lot 98, GRIMSBY – Drive-thru Burger King and shop let at £109,000pa. Sold for £1.18m (NIY 8.7%) to a North West based Pension Scheme
Lot 106, GATLEY – Modern offices let to Intervoice Ltd at £250,000pa with consent granted for 24 residential units. Sold for £2m (£73 psf cap val) to a Guernsey based Private Investor