Winchcombe House, a retail parade with office accommodation in central Cheltenham, was one of the big sellers at Acuitus’ May auction, which raised a total of £14.5m.
The 20,000 sq ft property, offered on behalf a major fund manager, believed to be USS, sold for £1.7m. It generates £187,000 of annual rent currently but has potential for change of use to a hotel.
A prominent section of Truro’s high street, also offered on behalf of a fund, with two adjoining shops at 91 and 92 Pydar Street sold for £1.5m. The combined property produces £240,000 in annual rental income with the two occupiers having lease expires in 2027.
In Thurrock, Essex, a motor trade/warehouse, let to Halfords on a full repairing and insuring lease for a term certain until 2031, sold for £874,000 at a yield of 5.3%. The property generates £49,500 in annual rent with CPIH rent reviews subject to a 1% collar and 3% cap.
Acuitus director Jon Skerry said: “Properties which offer excellent development potential, alongside prime city-centre locations, provide substantial active management opportunity for buyers to see long-term capital growth.”
In addition to income-producing properties, a total of nine development opportunities sold at the auction, which Acuitus said highlighted a growing theme of entrepreneurial buyers looking to secure assets with long-term asset management potential.
Chairman Richard Auterac said: “Auctions are continuing to serve as a conduit between private investors and the development property market, with transactions such as we saw in our auction indicating a more positive sentiment across the commercial property market.
“As the market awaits impatiently for the reduction in the Band of England interest rates, investors can take comfort in the more positive macro picture unfolding and we would expect to see this further charge volumes and transactions across the auction market.”
Acuitus’ next sale takes place on 4 July.
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