A water tower in Cornwall with stunning sea views was snapped up for double its guide price in the latest Allsop Residential sale.
The buyer paid £301,000 for the tower in Rosudgeon, Penzance (lot 119), against a £150,000 guide. It was offered on behalf of Cornwall Council in the 16 July online auction and is subject to three telecoms leases producing a total income of £20,000 pa, a 13.6% yield.
Bidders were no doubt attracted to the development potential of the 0.2-acre site, which lies within walking distance of picturesque Perranuthnoe Beach. The popular beaches of Praa Sands, Porthleven, Rinsey and Marazion, as well as the famous St Michael’s Mount, are all within five miles.
More conventional lots in the sale included a freehold in Hammersmith, W6, which had been in the same ownership for 93 years. It achieved the highest price in the sale, selling for almost £1.5m, a 3.22% gross initial yield.
The property on Westcroft Square (lot 40A) is divided into two maisonettes, one subject to an assured shorthold tenancy and the other to a regulated tenancy.
This was the only lot to sell for more than £1m in the sale, which raised a total of £39m and achieved an 82% success rate. Some 217 lots were offered, with 176 finding buyers. However, just over 40 lots were withdrawn prior.
Some 6,113 online bids were placed on the day, with 2,359 approved registered bidders.
Gary Murphy, auctioneer at Allsop, said: “We are seeing a mini-boom in the residential sector. This has been fuelled by the release of pent-up demand since the easing of lockdown, the recent stamp duty changes and sustained enthusiasm among investors for residential property as an asset class.”
Development site sales included an opportunity in Wimbledon, SW19 (lot 130A), where planning permission is pending for six flats totalling 3,700 sq ft. It sold for £900,000.
However, an opportunity in the heart of London – the priciest lot in the catalogue – remains available. The mixed-use mid-terrace building on Homer Row in Marylebone, W1 (lot 44), was guided at £4.75m. Planning permission was granted in 2014 for demolition and replacement with a seven-storey building of six flats.
A pair of sites in Erith, Kent (lot 78), proved more successful. They were sold with permission for five three-bedroom houses and one two-bedroom house for £862,000.
The next Allsop residential sale will be held on 17 September.
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