A property on London’s Pall Mall, offered on behalf of liquidators, sold for £10.8m in the latest Allsop commercial sale.
The building at 40-41 Pall Mall, SW1, had been owned by Pall Investments, which was placed into a creditors’ voluntary liquidation earlier this year.
Allsop said the auction deadline brought interest in the asset to a head and competitive bidding drove the price above the guide and led to it being sold in just 10 weeks. The £10.8m sale price represents nearly £1,200 per sq ft. A 2015 planning consent for a mixed-use scheme behind a retained facade had lapsed.
The June sale as whole raised £47m from 48 lots, 17 of which raised more than £1m.
Outside central London, another highlight was a portfolio of four KFC drive-thru units, which were all let on long leases, up to 2043 with the KFC GB guarantor. Appetite was strong across the board, Allsop said, with a number of bidders switching from their preferred lot to one of the others as they sought exposure to this popular sector with a well-known tenant. The demand drove the average yield down to 6.2% off the average price of £1.32m.
The expanding Gail’s Bakery chain also delivered another peak of demand in Gerrards Cross, with a bakery and two maisonettes all let on a long lease at £72,500pa selling at £1.24m.
Highlights of the day:
- Lot 27 – 40-41 Pall Mall, sold at £10.8m
- Lot 6 – KFC Deptford, sold at £1.36m
- Lot 8 – Gail’s Bakery and maisonettes, Gerrards Cross, sold at £1.24m
George Walker, partner and auctioneer, said: “These peaks of demand in central London and the regions confirm that the private investor is waiting to compete for the better quality assets at auction, to improve their portfolios and build strong income. These yields, nine of which were 5% or below simply don’t allow financing but buyers are content with adding real quality to their portfolios as they have faith in the diversity of their assets.”
Allsop’s next commercial auction is on 17 July.
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