Acuitus raised £29.27m at its final
auction of 2012 as investors targeted long-term income
The auction success rate of 85% was Acuitus's highets of the
year. Of the 53 lots offered, 39 sold in the room with six selling
Acuitus auctioneer Richard Auterac commented: "This was an
emphatic end to our 2012 auction programme. The increased market
momentum that our October auction showed was carried through to
this sale as investors locked into the long-term income
opportunities on offer.
"In a week when the Autumn Statement gave little cheer to the
wider investment market, the auction demonstrated the increasing
popularity of property as a medium to deliver returns. Several of
the buyers today were picking up investments specifically for
pension planning purposes.
"Bricks and mortar investments are being viewed by some
investors including those from overseas as having the same
defensive qualities as gold but with the substantial advantages of
high income returns with capital value growth when the economy
"Once again, investors showed an appetite for a widening range
of assets both in terms of type and geography. Whereas earlier this
year, buyers were focusing almost exclusively on properties in
London and the South East, buying criteria now has a much broader
base. This was illustrated by the sale of substantial properties in
Leicester, Birmingham and Durham.
"This is a very positive trend as we head into 2013."
Four trade counter warehouses offered in the sale all sold. A
10,106-sq ft unit in Guildford let to Wolseley at a current rent of
£98,500pasold before the auction for in excess of £1.1m.
Buyers were also attracted to newly let shops with long-term
income. Four high street shops occupied by Sue Ryder let on new
10-year leases all sold at an average yield of 5.90% while an
11,825-sq ft office building in London's Bermondsey let to Action
for Blind People at a current rent of £107,000 on a lease expiring
in 2027 sold for £1.26m.
Richard Auterac commented: "We have some heavy-weight buyers who
follow Acuitus and they, like us, have sensed following our last
auction that there has been a turning point.
"However, this remains very much a market for the expert
investor, but with an improved flow of assets coming into the room,
expert pricing and strengthening buyer power, the auction sector
can head into 2013 with a renewed sense of purpose."
Other sales in the room included:
- 98 Above Bar Street,
Southampton: a prime freehold retail investment let to
Burger King at a current rent of £110,000pa sold for£1.05m
- Humberstone House, Leicester: a
29,794 sq ft freehold office building currently producing £159,840
pa sold for £850,000
- 180 Drury Lane: a 1,796 sq ft
freehold retail, office and residential property in London's Covent
Garden currently producing £9,000pa sold for £490,000
- Three LA Fitness
Centres: all found buyers with the centre in Hove
which currently produces income of £222,533pa selling for
- 68 Uxbridge Road, London: a
1,890 sq ft freehold retail investment let to Greggs on a new
10-year lease currently producing £80,900pa sold for £1.355m
- Tilbury, Kent: a 9.3-acre site
with planning consent for industrial development sold for
Acuitus is now taking sale instructions
for its first auction of 2013 which will take place on February
14th at the Millennium Hotel, London W1.