Acuitus’ fourth auction of 2016,
and the first to take place following the EU referendum, achieved impressively
strong results, with 83% of the lots on offer selling for a combined total of
£55.7 million, with 20 of those properties raising more than £1 million each.
The highest priced sale was for a
13,986 square foot Aldi supermarket in Rochdale. Let until 2030 at a rent of
£226,281 per annum, it fetched £3.7 million, at a yield of 5.7%. Properties
with asset management and development potential were also popular at the
auction, particularly a freehold office building with residential potential
near Tower Bridge in London. Its final sale price of £1.35 million was 65%
above its initial guide price.
Auterac commented: “In this time of economic uncertainty, the auction room
enables investors to access the type of income returns which are not available
through other investment media and that demand was vividly demonstrated today.
Interestingly, the mood of investors in the room was as upbeat as it was at our
“There is a long way to go with the negotiation of the uK’s exit
from the European Union, but this sale demonstrated that despite the headlines
around the large open-ended investment funds, there is strong investor demand
for direct ownership.”
Acuitus conducted a post-referendum survey of 50 UK
clearing and international banks, development lenders and providers of
short-term finance, which indicated that the exit result has led to little or
no change in lending terms.
“With regard to the commercial property investment market,” said
Richard Auterac, “the clear message from the UK clearing banks and specialist
lenders is that they are open for business as usual. The prudent level of debt
finance available to investors was clearly an important factor in the strong
level of buyer demand at this auction.”
Acuitus’ next auction will take place at the Radisson
Blu Portman Hotel, 22 Portman Square, London W1H 7BG on Thursday 13 October.