In a week when queues for fuel snaked around the UK, a petrol station investment was the largest lot sold under the hammer at the Acuitus live-streamed sale.
The freehold asset in Willesden (lot 8), London NW10, sold for £4.58m, a net initial yield of 3.6%. Let on a new 30-year lease to Euro Garages with no breaks and fixed rental increases throughout the term, the station, which is close to London’s North Circular; produces annual income of £180,000; and includes a Spar convenience store with Starbucks and Subway concessions.
Acuitus investment director David Margolis said: “It was apt that there was concerted bidding for this asset just as so many motorists were heading for a petrol station. However, it illustrates once again the attraction of long-term income underpinned by a strong covenant.”
The total raised from the 24 September sale was £23.57m, with 88% of the properties offered finding buyers. The auction also demonstrated strong appetite for retail properties with active asset management opportunities.
The listed 32,000 sq ft Royal Arcade in Norwich (lot 14) was guided at £1.25m and sold for £3.38m. Comprising 20 retail units with gross rental income of £267,300, the unique nature of the asset and its strong location prompted bidding from a wide range of investors.
The St Elli Shopping Centre in Llanelli, let to occupiers including Sports Direct, Wilko, Greggs, Card Factory, Poundland and Principality Building Society with gross rental income of £632,677, sold for £2.25m, above its guide price of £2m.
Director Charlie Powter said: “Shopping centres with substantial town centre footprints are attractive to private investors for the potential to increase net income by reletting to new occupiers at rents that are affordable.”
Other retail lots included 452 Holloway Road in London N7 – a 2,495 sq ft shop let to Holland & Barrett until 2025 at a current annual rent of £60,000. It sold for £1.38m at a yield of 4.1%.
A portfolio of dental surgery investments in Wareham, New Milton and Bournemouth sold for between £204,000 and £614,000 at yields starting below 5%. All are let on new 15-year leases at re-based rents and produce annual income of £12,500 to £30,000.
Elsewhere, a property in North Cheam, Surrey, with a ground floor shop, let on a new 15-year lease and with a refurbished three-bedroom maisonette above, sold for £465,000 at a yield of 5.57%. In Farnham, a retail asset with potential for residential redevelopment was bought for £645,000 at a yield of 6.63%.
The next Acuitus auction will take place on 4 November.
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