Six redundant underground reservoir sites were sold through online auction for more than £700,000 last week, more than 10 times their combined reserve.
The rural sites in Leicestershire and Gloucestershire were sold through Lambert Smith Hampton on behalf of FTSE 100 utility firm Severn Trent. They were snapped up by buyers based locally or in the region in an online auction over 4-5 October.
Several sites saw significant price increases in the automatic extension period after the scheduled close of the auction, the online equivalent of the auctioneer calling “for the first time, second time…”.
The 24-hour sales were extended by one minute if a bid was placed in the last scheduled minute and did so until there was one minute of “bidding silence”. This is to stop bidders trying to win by leaving their bid until the last moment before the auction closes.
One site, near Lutterworth, Leicestershire, saw a 25% price hike as six bidders battled over the 1-acre plot during a 38-minute extension. After 203 bids from 16 different parties, it sold for £196,000, against a £5,000 reserve.
Another, at Bottesford, near Nottingham, saw a 12% increase as two bidders fought over the 1.1-acre site during a 14-minute extension. It sold for £231,000 against a reserve of £20,000. A total of 14 bidders placed 192 bids for the site.
Gillian Bullimore, property manager at Severn Trent said: “We believe that using the online platform for these particular type of sites has increased interest and imagination from the market which in turn has secured higher returns for our customers and shareholders.”
LSH head of auctions Oliver Childs said: “This shows that technology can recreate the enthusiasm of an auctioneer. I love the ballroom, but sometimes there’s a reason to use a different method.”
Six more surplus reservoir sites will be offered online on 29-30 November and Childs said he expects to increase the reserve pricing for those lots based on the recent sale and depth of interest.
“We don’t want people to waste their time or get excited unnecessarily,” he said.
Over the three- to four-week marketing period, Childs said the team received 100 phone calls and 100 e-mails each day.
The bidding in numbers
- 814 legal packs requested
- 217 parties authorised to bid
- 69 bidders
- 626 bids placed
- £61,000 combined reserve
- £717,000 combined total
To send feedback, e-mail julia.cahill@egi.co.uk or tweet @egjuliac or @estatesgazette
