Allsop raised £100m at auctions held over a two-week period last month, proving that there is a market – albeit a very price-sensitive one.
Its online commercial sale on 19 September raised £32m, with 56 lots finding buyers from 74 offered, a 76% success rate.
The results showed that sellers can achieve a premium, with lots selling at an average of 14% above reserve. “Typically, that would be 10-12%,” said partner and auctioneer George Walker.
“Those who do want to sell can get overage. If you accept the pricing, then the market will compete,” he said.
A portfolio of dental practice properties let to Rodericks Dental, mostly until 2036, were among the most sought-after lots. One in Banbury, Oxfordshire, sold at a 5.85% yield, fetching £450,000.
In Crawley, West Sussex, a warehouse site on a very long lease to Smiths News Trading sold at 5.23%, raising £1.35m from a £950,000 guide.
“The 6% threshold is looking increasingly hard for us to beat,” Walker said.
The residential sales were held across three days. More than 1,000 people registered to bid, reflecting the fact that this was Allsop’s largest catalogue for 10 years.
An in-room sale at the May Fair Hotel in London, W1, kicked things off on 21 September with a catalogue focused on London and the South East. It raised £44m, with 144 lots sold from 185 offered – a 78% success rate.
Successes included two blocks of flats in Purley guided at £3.85m-plus. They sold for £4.17m after six or seven bidders battled it out. “Generally, the buyer pool thins out the higher up you go, but the market responded to these lots,” said partner and auctioneer Richard Adamson.
Two flats with development potential in Fulham, SW6, guided at £660,000 (pictured) were another strong performer. They sold for £887,500.
The subsequent live-stream sales on 27-28 September focused on lower-value lots and raised £20m. Some 159 properties found buyers from 175 offered, a 91% success rate.
Adamson said the success rate of 86% across the three days was encouraging. “There is a market. It’s a hard one, it’s very price sensitive, but there is a market. We are in a price discovery period.”
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