Larger lots bring bigger opportunities in Acuitus May auction

9th May 2023

Several lots with guide prices of £1m or more feature in the catalogue for the forthcoming Acuitus commercial property auction on May 18th.

The largest lot in the sale is Regent House, a freehold office investment in Torquay, Devon, which generates £307,408 in rent and is being offered with a guide price of £3m+. The 24,290-sq ft property is let to the Torbay and South Devon NHS Foundation Trust on a recently renewed 10-year lease and also benefits from 48 parking spaces.

David Margolis of Acuitus comments: “We have seen a lot of talk in the press on the future and longevity of commercial offices, both for occupiers and asset owners. Assets such as Regent House not only offer buyers a high grade asset, but also long-term sustainable income from a strong covenant with RPI-linked rent reviews every five years capped at 3%”.

One of the largest lots of the auction is a prime development opportunity near Laporte Retail Park in Luton with a guide price of £2.25m+.  Near to Aldi, B&Q, Lidl, Dreams, DFS and SCS, the total site area is 3.46 acres and there is full planning permission for development of a 34,000-sq ft trade counter/warehouse. Heads of Terms were previously agreed with a potential occupier based on a new 15-year lease with a commencing rent of £517,000 annually and it will be for a buyer to continue any negotiations. The site also provides for possible open storage development opportunity, subject to consents.

In Newcastle, a freehold hotel investment is for sale with a guide price of £2.5m-£2.6m. The 40-bed Travelodge is situated at the key Seaton Burn interchange of the A1 with the A19 Tyne Tunnel road, and includes a sub-let restaurant building on its 1.6 acre site. The property currently generates £173,390 in rental income and is let to Travelodge Hotels until 2029 with options for both landlord and tenant to extend until 2039 and 2054 respectively.

John Mehtab of Acuitus comments: “The hotel sector suffered during the pandemic but is now emphatically moving forward again. Good quality assets such as this which generate strong revenue streams are a target for many investors”.

A prominent freehold public house investment in Catford, south east London is being offered for sale.  The Ninth Life is on the busy Catford Gyratory and currently generates £150,000 in rental income with five-yearly rent reviews for the remaining 15 years left of the lease. The property underwent a substantial refit by the tenant in 2018, and benefits from a patio and rear garden. It is being offered with a guide price of £2.35m.

In Poole, a well-known hotel and gastro pub is being offered for sale with a guide price of £1.75m. The Anchorage is located in a fashionable area on Haven Road which is the main route to Sandbanks, one of the UK’s most affluent residential areas. It’s undergone a significant refitting and is let to Greene King on a new 20-year lease running from September 2022 without break at a rent of £120,000.

Jon Skerry of Acuitus comments “Good quality leisure investments are highly sought after assets for investors. Both of these assets, in Catford and Poole, offer long-term income streams and benefit from strong locations”.

A heritable (freehold) industrial asset in Aberdeen, which currently produces annual income of £182,500, is for sale with a guide price of £1.4m. The property on the major Denmore Industrial Estate is let to Sparrows Offshore Services. The tenant exercised their option to extend their lease until 2027 and have occupied the property for more than 15 years.

Mhairi Archibald of Acuitus comments “Sparrows’ operation in Aberdeen extends over seven locations focussed on Bridge of Don, highlighting the importance of this location to them”.

Richard Auterac, Chairman of Acuitus comments: “We are seeing a significant rise in the number of good quality assets. High net worth investors will never shy away from quality as assets priced to reflect today’s financial environment provide the security of income and higher returns required, as well as the potential for good future capital growth. Our investors have significant funds to invest and we are delighted to be able to offer these properties for purchase”.

The Acuitus auction will take place on Thursday May 18th at 1pm. It will be broadcast via livestream on the Acuitus website and offers online, telephone and proxy bidding.