Big lots bring relief for Harman Healy

News

Samantha Jenkins

06 March 2004

Some sparkling results compensated Harman Healy Commercial for its £9.8m auction last week, where only 68% of the lots sold.

Although post-sales mean that 72% of the lots have now sold for just under £11m, auctioneer Felix Rigg admitted to being “disappointed from the corporate point of view but absolutely thrilled from our customers’ point of view”.

Emphasising that everything in the catalogue “could and should be sold at auction”, Rigg said that the firm was perhaps “a victim of our own success”.

“Perhaps some expectations are a little high,” he added.

Vendors’ expectations were surpassed when a Provence Leisure sale and leaseback of Club Platinum, a nightclub in Wards End, Halifax sold prior for an “outrageous figure”.

Originally guided at £695,000, it sold prior for “substantially over £750,000”.

While the most valuable lot a multi-let business space investment in West Road, Tottenham, N17 sold for £1.1m, reflecting an 11% yield, strong bidding on some of the smaller lots resulted in keen yields.

A “tiny example of the strength of the market” was the £100,000 sale of a Chinese takeaway in Southbourne. With the two flats having been sold off, “the meat had been carved off the bone”, Rigg said, but the investment’s income of £7,630 pa resulted in a 7.4% net initial yield.

Residential sale hits 87%

Two days after the commercial sale, Harman Healy Residential saw 87% of the lots on offer at its auction mopped up for almost £10.5m.

“Last year we read various reports that we would see only modest growth in the residential sector,” said auctioneer Robin Wilson. “Well, we’ve had two sales already, both £10m-plus auctions. It’s a good start to the year.”

The sale of the first lot demonstrated the popularity of renovation/conversion projects. The four-floor house in Thornhill Square, Islington, N1 had previously been used as flats and is thought to have suffered fire damage. Offered by New Islington & Hackney Housing Association with a £600,000 reserve, it made £800,000 under the hammer.

A modern terraced house in Petros Gardens, Swiss Cottage, NW3 was offered by Pathmeads Housing Association with a £200,000 reserve but sold for £296,000.

In Glasgow, a flat in Buccleuch Street, Garnethill fetched £87,000, beating its £45,000 guide and £50,000 reserve.

Some sparkling results compensated Harman Healy Commercial for its £9.8m auction last week, where only 68% of the lots sold. Although post-sales mean that 72% of the lots have now sold for just under £11m, auctioneer Felix Rigg admitted to being “disappointed from the corporate point of view but absolutely thrilled from our customers’ point of view”. Emphasising that everything in the catalogue “could and should be sold at auction”, Rigg said that the firm was perhaps “a victim of our own success”. “Perhaps some expectations are a little high,” he added. Vendors’ expectations were surpassed when a Provence Leisure sale and leaseback of Club Platinum, a nightclub in Wards End, Halifax sold prior for an “outrageous figure”. Originally guided at £695,000, it sold prior for “substantially over £750,000”. While the most valuable lot a multi-let business space investment in West Road, Tottenham, N17 sold for £1.1m, reflecting an 11% yield, strong bidding on some of the smaller lots resulted in keen yields. A “tiny example of the strength of the market” was the £100,000 sale of a Chinese takeaway in Southbourne. With the two flats having been sold off, “the meat had been carved off the bone”, Rigg said, but the investment’s income of £7,630 pa resulted in a 7.4% net initial yield. Residential sale hits 87% Two days after the commercial sale, Harman Healy Residential saw 87% of the lots on offer at its auction mopped up for almost £10.5m. “Last year we read various reports that we would see only modest growth in the residential sector,” said auctioneer Robin Wilson. “Well, we’ve had two sales already, both £10m-plus auctions. It’s a good start to the year.” The sale of the first lot demonstrated the popularity of renovation/conversion projects. The four-floor house in Thornhill Square, Islington, N1 had previously been used as flats and is thought to have suffered fire damage. Offered by New Islington & Hackney Housing Association with a £600,000 reserve, it made £800,000 under the hammer. A modern terraced house in Petros Gardens, Swiss Cottage, NW3 was offered by Pathmeads Housing Association with a £200,000 reserve but sold for £296,000. In Glasgow, a flat in Buccleuch Street, Garnethill fetched £87,000, beating its £45,000 guide and £50,000 reserve.