Harman Healy’s £10.5m finale

News

13 May 1989

The New Connaught Rooms witnessed the end of an era on May 4 when Harman Healy held their last property auction as an independent firm.

Just days earlier, Australian-owned property consultancy Sallmanns announced that they were to buy the firm, one of the country’s largest commercial property auctioneers, for £6.7m.

But the occasion was not a grand finale: despite a packed room, joint auctioneers John Barnett and Jonathan Radgick had to be content with a 66% sale rate, though the final total raised was £10.5m.

However, Mr Barnett remained optimistic about the sale. “I was satisfied with the quality of the properties on offer,” he said. “What depressed the final sale figure was our failure to sell the catalogue’s tertiary properties.”

This negative trend was compounded by what Mr Barnett sees as a refusal by vendors to face reality.

“A lot of vendors are not over-keen to sell. Some will simply not accept that they cannot sell a property if it will show them a loss,” he claims.

“The result also reflects the fact that interest rates are having an increasing effect on the market — perhaps because they are no longer viewed as a short-term measure and we will have to be even tougher on reserves for the next sale.”

Nevertheless, several properties offered on the day inspired considerable interest. A lock-up shop and residential investment on the Broadway, Burnt Oak, Edgware, Middlesex, producing £5,050 pa, sold for £133,000 — a yield of 3.75%.

In central London, what is fast becoming known at the “Portland” area of the West End witnessed the high point of the day’s business. A 2,280-sq ft showroom and office building at 68 Wells Street, W1, producing £25,500 pa, sold for £622,000.

The decision to buy Harman Healy was confirmed by a general meeting of Sallmanns’ shareholders in Melbourne, Australia, where the company is quoted on Sydney’s stock exchange.

The purchase price of £6.7m represents the maximum that Sallmanns have undertaken to pay for the firm, conditional on profit targets being reached by Harman Healy.

Auctioneers John Barnett and Jonathan Radgick will join Sallmanns’ UK board on five-year contracts.

The company will be known as Sallmanns-Harman Healy.

The New Connaught Rooms witnessed the end of an era on May 4 when Harman Healy held their last property auction as an independent firm. Just days earlier, Australian-owned property consultancy Sallmanns announced that they were to buy the firm, one of the country’s largest commercial property auctioneers, for £6.7m. But the occasion was not a grand finale: despite a packed room, joint auctioneers John Barnett and Jonathan Radgick had to be content with a 66% sale rate, though the final total raised was £10.5m. However, Mr Barnett remained optimistic about the sale. “I was satisfied with the quality of the properties on offer,” he said. “What depressed the final sale figure was our failure to sell the catalogue’s tertiary properties.” This negative trend was compounded by what Mr Barnett sees as a refusal by vendors to face reality. “A lot of vendors are not over-keen to sell. Some will simply not accept that they cannot sell a property if it will show them a loss,” he claims. “The result also reflects the fact that interest rates are having an increasing effect on the market — perhaps because they are no longer viewed as a short-term measure and we will have to be even tougher on reserves for the next sale.” Nevertheless, several properties offered on the day inspired considerable interest. A lock-up shop and residential investment on the Broadway, Burnt Oak, Edgware, Middlesex, producing £5,050 pa, sold for £133,000 — a yield of 3.75%. In central London, what is fast becoming known at the “Portland” area of the West End witnessed the high point of the day’s business. A 2,280-sq ft showroom and office building at 68 Wells Street, W1, producing £25,500 pa, sold for £622,000. The decision to buy Harman Healy was confirmed by a general meeting of Sallmanns’ shareholders in Melbourne, Australia, where the company is quoted on Sydney’s stock exchange. The purchase price of £6.7m represents the maximum that Sallmanns have undertaken to pay for the firm, conditional on profit targets being reached by Harman Healy. Auctioneers John Barnett and Jonathan Radgick will join Sallmanns’ UK board on five-year contracts. The company will be known as Sallmanns-Harman Healy.