Buying was dominated by private investors
at the latest Acuitus auction which raised £14.5m at a sale rate of
64%.
Acuitus auctioneer Richard Auterac commented: "This auction
painted a very vivid picture of the buying precision that private
investors are bringing to the sector. Where lots fitted their
criteria there was sustained bidding which saw guide prices
substantially exceeded in the energetic and vibrant room".
A trio of shops in Rickmansworth, Cirencester and Aldeburgh
which are all let to Sue Ryder Care on new 10-year leases sold at
yields between 5.9 and 6.8% while a 2,203-sq ft listed building in
Leighton Buzzard let to Lloyds Bank sold for £780,000 at a yield of
4.7%. The sale of the latter was at a level around 20% above its
guide price.
A Kwik-Fit Centre at Staples Corner in London sold for £1.47m at
a yield of 5.2% while 15 Grape Street WC2 - a 3,755-sq ft office
building let to the Republic of Cuba for its London consulate - was
bought for £1.4m at a yield of 5.5%.
The auction demonstrated demand for all sectors across a wide
geographical spread with buyers in the market for industrial and
office assets as well as retail. The industrial sector in
particularly showed strong investor interest as an alternative
medium to retail.
The Sycamore Centre in Rotherham - a 20-unit trading estate in
Rotherham - sold for £1.125m (11.2% NIY and £44 per sq ft) while
other industrial investments in Iver and Wakefield achieved
£895,000 (10% NIY and £80 per sq ft) and £722,000 (9.7% NIY and £43
per sq ft) respectively.
Auterac observes: "There is still a struggle in some quarters to
reconcile the expectations of sellers and their valuers with what
buyers are prepared to pay but where pricing is realistic - without
being soft - then investments sell.
"This is constantly demonstrated by the lots offered on behalf
of receivers and administrators and their bank clients which sell
well because they capture the correct approach to pricing for the
assets involved."
Other notable sales in the March auction included:
- A drive-thru restaurant in Lichfield let to McDonalds at
£71,000pa sold for £1.2m at a yield of 5.5%
- A 1,107-sq ft shop in Brighton's "Lanes" shopping district sold
for £895,00 at a yield of 5.5%
- Three retail units totalling 3,177-sq ft in Peterborough let on
short leases to tenants including Ladbrokes at a total rent of
£58,700pa sold for £680,000 which was £180,000 above the guide
price
Acuitus is now taking sale instructions
for its next auction which will take place on May 24 at the
Millennium Hotel, London W1