Allsop’s March commercial auction raised £70m with a success rate close to 90%, as demand appears unaffected by geopolitical instability and the rise in interest rates.
Some 25 lots sold at prices of £1m or more in the 24 March sale. These included a Boots pharmacy in Surbiton (lot 34, pictured), which sold at £2.69m (NIY 3.1%). However, a retail warehouse investment in Glossop, Derbyshire, guided at £3.65m (a gross initial yield of 7.5%) remains available. It was the highest guided lot in the sale.
George Walker, partner and auctioneer at Allsop, said: “Investors had a lot to contend with in recent weeks, including an uncertain geopolitical climate and the rise of the Bank of England base rate in the UK, but our latest sale has demonstrated that their appetite for commercial investment has remained unbowed. The rising cost of money is prompting some buyers to lock into fixed five-year rates as a hedge against the rising cost of borrowing, while many are choosing to use their cash reserves.
“As the moratorium on commercial evictions comes to end, we’re expecting to see even higher volumes of investors looking to tap into the wealth of opportunities offered by retail. This was a strong finish to the financial year, over the course of which we’ve generated £607.5m of sales through our digital auction platform, and we’re ready to enter our third year of online auctions.”
Allsop has sold a total of 840 lots at auction over the course of the financial year. Its next commercial property auction will take place online on 25 May.
Highlights of the March auction included:
- Lot 105, a mixed-use investment in Havant town centre, Hampshire, comprising 14 flats and four shops let at £186,100 per annum, sold at over £2.8m prior to auction (NIY 6%)
- Lot 6, a land, garage and parking investment in Highbury, with 21 garages and 20 parking spaces on a 26-acre site, sold at £1.53m (NIY 2.44%)
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