Healey & Baker stormed back to the rostrum on April 12 as auctioneers Richard Pryce and Ken Allen raised £19.069m with the sale of 83% of the 28 commercial lots on offer at the London Auction Mart, WC2.
“This was a most satisfying sale,” commented auctions partner David Masters. “Office properties are going from strength to strength and retail warehouses continue to sell well.”
An office investment at 44 Corn Street, Bristol (shown here) attracted particular interest prior to the sale. The 11,615-sq ft building was offered with five rent reviews outstanding and two lease renewals under review. At present the six-storey freehold property produces £30,216 pa with reversions in 1990 and 1995. The reversionary significance of all this was not lost on the room and the property sold for £1.26m.
Another office property prompted the highest price of the day. The 36,725-sq ft Talbot House on Imperial Drive, Harrow, Middlesex, is let to IBM (UK) at £306,500 pa. The prospect of a rent review in 1992 enticed 21 bids from the room — and Talbot House sold for £3.39m.
“These properties sold because we have learned the hard way about setting the right reserves,” commented Mr Masters. “We always stress the need for a sensible approach and the market recognises this.”
The six retail warehouse investments entered by Comet also inspired some hectic bidding. Five out of the six lots offered sold, raising a combined total of £2.6m with a property at 25 King Street, Blackburn, Lancashire, leading the field. Producing £50,000 pa, the 8,220-sq ft unit sold for £535,000.
“This auction has shown the continued buoyancy of the auction market,” concluded H&B’s Richard Pryce, “and in particular the demand for good-quality investments. Interestingly, all types of investors are active at auctions, from private buyers to institutions.”
