Allsop’s September commercial sale proved to be its largest in nearly three years, raising £96.7m from 113 investments.
The 23 September online auction saw 86% of lots find buyers and continued a bumper year for the firm. Thirty-four lots sold at £1m or more, at an average of £1.67m.
Bidders continued to be unperturbed by the heavy retail weighting, with 77% of investments sold being retail. However, the largest lot to sell was the former Reader’s Digest head office in Swindon for £5m (lots 34 and 54).
Trade counters and industrials featured strongly. In Chichester, West Sussex, a pair of units (lots 25 and 31) let to Jewson and West Sussex County Council on long leases expiring in 2032 and 2030, sold prior at £5m, a 6% net yield.
Mixed-use investments continued to appeal to buyers looking to diversify their exposure, with good appetite shown for assets across the UK.
In Tenterden, an unbroken parade of five shops, five maisonettes, garages and car park spaces (lot 13) sold for £2.26m. Let at a total rent of £181,044 pa (7.6% net initial yield), its tenants include Boots.
George Walker, partner and auctioneer, said: “This was a strong sale; we raised the biggest total in the market since pre-Brexit in October 2018. Demand on auction day continued to be as solid as we have seen all year so far.
“Investors continue to compete for the best assets, while showing good appetite for risk on the poorer stock, particularly in the retail sector, which comprised over 75% of the sale. The auction showed signs of a retail market rebound, reflecting confidence and faith in bricks and mortar.”
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