A major UK fund sold a Lincolnshire warehouse for £4m, reflecting a 10.56% net yield, at the latest Allsop commercial sale.
The 180,000 sq ft warehouse on an industrial estate in Scunthorpe (pictured) is let to International Automotive Components Group for two years and six months from May 2022 (lot 65).
Another fund sale was a retail warehouse which sold for £1.6m – a net yield of 8.65%. The 17,000 sq ft property is let to Halfords, which has a reversion in 2026, and Carpetright, which is holding over (lot 68).
However, a number of fund lots failed to sell in the 1 November online sale. For example, a part-vacant retail parade in Rotherham, South Yorkshire, is available at £1m, a net yield of 16.25%. Tenants include Bonmarché and Superdrug (lot 87).
The sale raised a total in excess of £49m, according to Essential Information Group figures.
Allsop offered 119 lots and sold 83. Around 60 lots were withdrawn prior.
The success rate of around 70% is lower than the norm for Allsop and may reflect the impact of the ongoing economic turmoil on investor confidence. The last time Allsop’s commercial success rate dipped to around 70% was during the 2008 recession.
Other successes in the 1 November sale included an 11,000 sq ft parade of shops in Beccles, Suffolk, offering income and development potential (lot 92). It sold for £1.1m – a 16.83% net yield .
A freehold children’s day nursery in Harrow, north-west London, sold for £1.4m, a net yield of 5.39%. It is let on a new 25-year lease with CPI-linked rent reviews (lot 17).
A further 10 Medivet premises found buyers, continuing the successful disposal strategy seen in September’s sale. They included premises in Beckenham, south-east London, which sold for £1.5m, a 5% yield.
As of today (4 November), a further seven lots have been sold, pushing Allsop’s total to £52m and improving its success rate.
George Walker, partner and auctioneer, said: “Despite the market uncertainty and the wait-and-see approach adopted by some investors in the aftermath of the infamous mini-Budget announcement, our team has raised a whopping £52m at our latest commercial auction – a testament to our ability to read the market and price assets in line with the expectations of our buyers, while ensuring the seller gets a fair price.
“In the current market environment, cash remains king, making us particularly well placed to transact and creating liquidity in an otherwise cautious market. We look forward to our final sale of the year next month.”
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