Four vacant town centre shops listed on behalf of Deloitte as administrators for Arcadia all found buyers in the latest Acuitus auction.
The leasehold shops in Doncaster, Aberdare, Dover, and Oldham are believed to be some of the first to be offered on the open market since Arcadia collapsed into administration last November.
In Doncaster, the former Dorothy Perkins store, totalling 3,422 sq ft over ground and two upper floors, fetched £104,000 for a 99-year lease from 1967.
In Aberdare, a former Burton store totalling 5,520 sq ft over ground and three upper floors, sold for just £22,000 for a 99-year lease from 1951.
In Dover, Kent, another former Burton store sold for £31,000 for a 99-year lease from 1957. It totals 3,784 sq ft over ground and two upper floors.
In Oldham, Greater Manchester, a former Topman store in the Spindles Shopping Centre sold prior for an undisclosed sum. The 3,260 sq ft store over ground and first floor is held on a 125-year lease from 1980 at a peppercorn rent.
Peter Mayo, Acuitus investment director, said: “We believe that these are some of the first assets that have been offered in the open market since the administration was announced and the fastest to have sold. What is significant is that there is a depth of interest to breathe new life into these stores.”
The sales were a small contribution to the £22.2m total Acuitus raised in its 25 March sale – its highest total since October, when it raised £24m.
Some of the biggest prices were paid for lots offering development potential.
The largest lot sold under the hammer was a freehold retail investment with residential development potential in St Ann’s Road, Harrow, HA1, which achieved £3.2m.
One of the two shops is vacant while the other is let to Home Store for a year until September and produces annual rent of £48,000. The 1.4% yield reflects the re-letting potential of the retail and the residential development potential above.
Acuitus chairman and auctioneer Richard Auterac said: “This sale featured a number of lots with development potential and these are attracting experienced investors who are hungry for active asset management. This is notable as it continues a trend that we first identified in July 2020. It could herald the start of a new development cycle in the non-institutional sector.”
Among the lots which sold prior to the sale was a substantial office and industrial investment property with residential redevelopment potential at Maldon in Essex. The seller had commissioned an indicative scheme showing a development of 32 flats and 19 houses. The existing investment produces £449,456 per annum and sold above its guide price of £5m-£5.25m.
Another potential development site, this time in Lydney, Gloucestershire, sold significantly above guide for £885,000. The 4.4-acre site is located at the junction of Lydney Park Boulevard and the A48. Acuitus was selling for administrators Moorfields.
A total of 30 lots from 35 offered found buyers, a success rate of 86%. Some 12 lots were withdrawn prior.
A freehold medical investment in Byker, Newcastle upon Tyne, sold for £1.05m. It is let to an NHS trust until 2039 with tenant breaks in 2024 and five yearly thereafter and generates a current annual income of £90,000.
Demand in the “alternative property” sector also remains strong with a builders yard and trade counter investment in Barnsley let to Travis Perkins selling prior to auction at a yield of 5.5%. The guide price was £850,000.
The next Acuitus livestream auction will take place on 5 May.
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