Acuitus September catalogue hits three-year high

8th September 2023

In what will be its largest sale for three years, the Acuitus commercial property auction on September 21st will bring to market 62 lots with guide prices ranging from £50,000 to £3.75m.

Acuitus Chairman, Richard Auterac, comments: “The progressive growth of our sales demonstrates a sector in transition as owners re-align their holdings to changed market conditions and investors look to capitalise on new opportunities.

“Our proven ability to connect buyers with assets has generated our largest sale since 2020 and the diversity of sellers, from major private equity houses and UK institutions to high net-worth individuals and receivers, illustrates the widespread restructuring of the commercial property markets.”

A Grade II freehold restaurant, office and residential investment in London’s Borough of Kensington is being offered with a guide price of £3.75m+ which reflects a net initial yield of 5.75%. The 4,450 sq ft property comprises a restaurant let to Flat Iron with a separately let clinic and a three-bed AST maisonette. The current annual rental income is £215,500.

Jon Skerry of Acuitus comments: “London is still the chosen location for many investors and these assets – with their mix of uses and superb location – will fit the buying criteria of many”.

The sales also features a substantial Kensington residential block of 20 self-contained flats at De Vere Gardens, 18 of which are subject to long leases and three of these having less than 50 years unexpired – providing potential for lease extensions. Generating current annual income of £25,230, the investment has a guide price of £1.8m.

Acting on behalf of a major UK fund, Acuitus is also selling a rare office freehold opportunity on the prestigious Stockley Park development near Heathrow. The 37,664 sq ft property at 1 The Square sits on a 2.2-acre site with 160 car parking spaces. Offered with vacant possession, the lot is guided at £3m which reflects a low capital value of £80 per sq ft and provides opportunities for refurbishment or division.

Further lots in the auction include a portfolio of five trade counter Investments in Beverley, Bicester, Dunmow, Eastwood and Newark. All are let to Travis Perkins until 2031 (no breaks), with five-yearly rent reviews and minimum uplifts of 3% pa compounded. Guide prices range from £1.25m-£2m.

Charlie Powter of Acuitus comments: “Trade counter properties are underpinned by the fundamental role they play in the construction and home improvement sectors and are seen as sustainable investments located on sites which may have long-term potential for other uses. As such, investors remain committed to this asset type”.

A fully-let freehold retail and residential parade in Woodley near Reading comprising five shops and eight separately accessed flats, generates annual income of £300,700 and has a guide price of £3m.

John Mehtab of Acuitus comments: “Located adjacent to a Waitrose, this parade offers the potential for additional residential accommodation and will appeal to active asset managers”. The auction also features other retail and mixed-use parades in Wolverhampton, Brighouse, and Madeley near Crewe.

Five public house investments are also being offered in the September catalogue, all of which have their leases guaranteed by Stonegate Pub Company and are subject to CPI rental increases to a minimum of 1% and maximum of 4%, with competitive guide prices showing yields ranging from 11.8%-12.5%

Richard Auterac continues: “The quality and diversity of lots offered at this sale signal that the market is now moving forward and there is more clarity on pricing. We expect the flow of assets through our sales to increase as sellers look to achieve their strategic aims and buyers access their sector-specific targets”.

The Acuitus auction will take place on September 21st at 1pm and will be broadcast via livestream on the Acuitus website with bidding online, by telephone and by proxy.