Lambert Smith Hampton raised £11.8m at its first auction of the year, selling 60 of the 67 lots on offer. The 90% success rate was driven by investor appetite for development opportunities.
The result of the 23 February sale was down on the £15m LSH achieved at its December auction off an 84% success rate.
An office-to-residential conversion opportunity in Slough, Berkshire – an area set to benefit from the arrival of Crossrail in 2018 – was the largest lot sold. Regal Court (pictured) was bought by a private propco from Zurich Assurance for £2.9m – a 3% yield – off a guide price of £2.7m. The 25,635 sq ft property is partially let and generates an income of £69,971 pa.
Auctioneer Oliver Childs said: “This was predominantly an office building, but with legislation for office-to-residential conversion and with Slough being on the Crossrail link it was a very popular lot.”
Other lots of interest included a freehold retail investment in Bristol comprising 3,697 sq ft let on a 10-year lease with an annual income of £18,750. It was sold on behalf of Nationwide Building Society to a London-based property investor for almost double the £250,000 guide, achieving £475,000 – a 4% yield.
A former water tower in Redditch, Worcestershire, attracted strong interest and sold for more than £100,000 over the guide price. The 0.1-acre site, sold on behalf of Severn Trent Water, generates an annual income of £18,850 from telecom masts. It was bought by a private investor for £210,000 – a 9% yield. Subject to planning, the plot has the potential for residential development.
