Allsop’s September commercial auction raised £43.3m, with 71 lots sold and a further five sales agreed since.
The auction was held on the day the UK government announced a new series of Covid-19-related restrictions in response to the rise in cases of the virus, which may have contributed to a lower than normal success rate for the firm of 77%. It is Allsop Commercial’s lowest success rate since May 2012.
Some 1,529 bids were placed for the 92 lots offered and there was strong competition for particular lots, with the margin above reserve for some surpassing 50%.
George Walker, partner and auctioneer at Allsop, said: “As cash buyers continue to act with caution given the uncertain market, this week’s auction saw a sharp focus on opportunities offering long-term development gains and secure rental income in favour of short-term yields.
“We’ve seen a continuation of the trend observed at our previous auctions this year, which is strong demand for sustainable income streams. Another asset class in high demand is bigger lots where buyers can add value in the longer-term and which offer wealth protection and reassurance in a cautious market.”
One example is lot 5 in Hampstead, NW6, a barber shop with three flats above, which sold at £2,015,000. The sale price was 55% above the reserve price and reflects a 4.5% yield.
Three larger lots above £3m all offered long-term value, and one particularly desirable lot was sold ahead of its pre-lockdown price.
The freehold retail and residential parade in Orpington, Kent (lot 30), beat its pre-lockdown price by £50,000 when it sold for £3.3m.
In Worthing, West Sussex, an office investment with development potential (lot 34) sold for £3,065,000, equating to £129.63 per sq ft and a 6.9% yield.
An attractive freehold bank and office investment in Streatham, SW16 (lot 52), with potential for future development sold at £3,250,000, a 5.5% yield.
Retail assets comprised 69% of lots sold, with a wide margin spread. A long-lease Co-op in Honeybourne, Worcestershire (lot 15), sold at a 4.6% yield (£1,205,000), while a short let retail parade in Wrexham, Clwyd, (lot 64) sold at 18% (£600,000).
The sale was Allsop’s fifth commercial auction this year to have taken place online. Its next will be held online on 3 November.
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