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Acuitus auction hits 83% sales rate

Acuitus achieved a success rate of 83% at its July auction, raising £52.4m.

Of the 81 lots offered, 67 sold, with 16 reaching prices of more than £1m.

The results were higher than those for the previous sale, in May, when the firm recorded a 73% success rate and a total of £37.4m.

A short-leasehold investment in London’s Bloomsbury sold for £4.6m. Let to University College London until 2028 at a current rent of £528,175, the Engineering Faculty building sold to a UK institution.

In Coventry a multi-let office building with residential development potential and current income of nearly £143,000, sold for £2m off a guide price of £1.6m, while an 18-unit industrial estate in Hinckley, Leicestershire, sold for £1.2m off a guide of £1.6m.

A shop with a flat above in Ruislip High Street, Middlesex, sold for £675,000 at a yield of 5.1%, while an Iceland-occupied supermarket in Ramsgate, Kent, sold for nearly £1.2m at a yield of 6.6%.

Acuitus chairman Richard Auterac said: “The sale reflected the diversity of demand in the market at present. Buyers are not just seeking long-term income; there is a distinct air of entrepreneurialism in the auction room at present, and future residential potential from change of use is still a strong driver of investor interest.”

He said: “As we head into the summer break, this was an emphatic message from investors about their sentiment towards commercial property. If assets are priced correctly, and professionally and thoroughly exposed to the market, they will find buyers.

“The private investor commercial property market did not suffer from the mass inflows of global money and the hype associated with the prime and super-prime market of the past three to four years. It has shown steady growth aligned with sustainable personal income and corporate profits, which have been recovering since the financial crisis, and a more prudent supply of bank loans,” he said.

The auction was held at the Radisson Blu Portman Hotel, W1, on 13 July.

 

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