Allsop Commercial has had a successful
start to 2018, with the first auction of the year selling 96 out of the 128
lots on offer at a total of £67 million and with a success rate of 80%. 21 of
the lots were sold for over £1 million.
The highest value lot on the day
was a neighbourhood parade of five shops in Reading, with the opportunity for
residential development above, which sold for £3.5 million at a Net Initial
Yield of 6.78%.
Auctioneer George Walker commented: “The auction room was busy, with buyers
focusing on long dated income or added value with more enthusiasm than we saw
towards the end of last year. Appetite is particularly strong for larger
assets, with Lot 76 in Woodley, Reading, selling for £3,500,000, some 20% above
the guide price in strong competition. The result gave confidence and stability
to the market on a day when global stock markets showed extreme volatility.”
Other notable lots on
the day included: a retail parade in Watford comprising four shops with six
maisonettes above with total rents of £100,000 per annum, which sold for £1.95
million (4.85%); a Halifax Bank in Lewes let at £62,000 per annum until 2031
(no breaks), which sold for £1.22 million (4.8%); and a retail parade in London
SE11 comprising 16 units let a total of £269,750 per annum, which sold for
£3.39 million (7.47%).
Allsop Commercial’s next auction will take place
at The Berkeley, Wilton Place, Knightsbridge, London SW1X 7RL on Thursday 22 March.