Allsop raised more than £96m in its May commercial auction, the highest total achieved in a UK property auction since the start of the year.
Private investors bought 106 lots from the 123 lots on offer, an 86% success rate. Only eight lots were withdrawn prior.
Allsop said the strong result demonstrated ongoing appetite for high-yielding opportunities that help offset inflation.
Thirty-four lots sold at prices of £1m-plus, with an average price of £1.95m. The largest lot of the auction was an office and warehouse space in Bognor Regis, sold prior at £4.3m (lot 24, pictured).
Retail investments saw especially high levels of interest (representing 73% of all lots sold), following the announcement of Morrisons’ takeover of McColl’s and the positive signals that sent to the investment community.
George Walker, partner and auctioneer at Allsop, said: “As we’re approaching the end of H1 2022, marked by uncertainty in the financial markets and geopolitical turbulence, private investors continue to see commercial property as an attractive asset class with the potential to generate high yields and long income, as evidenced by the results of our latest, record-breaking auction.
“The virtual auction room saw the arrival of new market participants as well as returning overseas buyers, who continue to view the UK property market as a reliable destination to deploy capital during turbulent times. We look forward to welcoming new and existing buyers to our next auction, which will bring opportunities for those seeking not only to safeguard, but also grow their capital.”
Auction highlights included:
- Lot 14 – a shop (let until 2033 with no breaks) with two self-contained flats above in Islington, N1, which sold at £3.6m (NIY 4.96%), making it the highest-value lot to sell on the day
- Lot 18 – a parade in Epsom comprising shops, a nightclub and a former gym, with total rents of £128,000 per annum, as well as 10,201 sq ft of vacant space, which sold at £2.45m (NIY 4.9%)
- a Boots portfolio – a total of 15 pharmacies let to Boots across the country, sold at a combined price of £21.3m, with leases ranging from three to seven years
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