A freehold leisure investment in Bradford, West Yorkshire, sold for £1.77m at last week’s Acuitus auction – a net initial yield of 5.2%.
The Buzz Bingo Hall (pictured) was offered on behalf of the Value and Indexed Property Income Trust. It is let on an RPI-linked lease until 2039, and currently produces an annual income of £98,279. The keen yield also reflected the demand for long-term income and the potential of its 2.87-acre site.
The trust’s property portfolio has been managed by the OLIM Property team since 1986.
Louise Cleary, fund Manager for VIP, said: “VIP are delighted with the sale having achieved 60% above valuation. It was the best way to sell this property, and shows how successful a competitive live streamed auction environment can be.”
The sale contributed to a £22.09m total for Acuitus. Investors appeared undeterred by the possible ramifications of the eviction moratorium being lifted last week, with 70% of the total invested into retail property.
Acuitus chairman Richard Auterac said: “The lifting of the commercial property eviction moratorium was another milestone in the transition from the massively disrupted market that prevailed throughout successive lockdowns.
“It remains to be seen what fallout this may yet still have, but from our experience landlords and tenants have been able to find satisfactory solutions. The demand being shown for retail assets demonstrates confidence in the long-term potential of many UK locations to attract strong levels of shoppers, or which offer scope for developing alternative uses alongside retail.”
Two substantial retail parades in Leeds and Birmingham were sold prior to the auction for a total of more than £5.3m, while a three-property asset with development potential on Broad Street in the heart of Reading’s shopping area sold for £1.55m – around 50% ahead of its guide. Leisure assets also proved popular.
Elsewhere in the auction, a trade counter investment in Wigan sold for £1.17m. The net initial yield of 5.9% showed strong demand for these assets, which are essentially retail but also have a logistics “kicker”. A 10,819-sq ft warehouse property on a 0.29 site in Walton-on-Thames, Surrey, sold for £880,000. The price of the latter reflected a yield of 4.8% and demonstrated the property’s potential scope for development.
Of the 34 lots offered, 29 sold and the average sale price was £762,000, with 20% of the lots achieving £1m-plus.
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