London assets prominent in Acuitus May auction

5th May 2022

London properties represent nearly a third of the lots being offered at the forthcoming Acuitus auction on May 18th.

Acuitus Chairman, Richard Auterac, comments: “Greater London is still the favoured location of many investors but supply remains relatively constrained.

“In the first quarter of this year, our Commercial Property Auction Data (cPad) research shows that London accounted for 17% of the lots sold by number, and 27% by value of all UK transactions. This was well above the 10-year average of 20%.”

The London properties in the May sale include investments in Kenton, Winchmore Hill, Shepherd’s Bush, Euston and Tooting. Guide prices range from £425,000 to the £2.95m being asked for a freehold retail and office investment on Tooting High Street. The property comprises a large ground floor unit let to Ladbrokes with offices on the first, second and third floors. It produces current annual income of £205,862.

David Margolis, Investment Director and Auctioneer at Acuitus comments: “Following the success of the two auctions we have held this year, which have raised around £50m under the hammer, it’s encouraging to see the variety of assets that we are now seeing on offer”.

At the May sale, a mixed-use property in the centre of Coventry is the largest lot on offer. The Old County Hall in Bayley Lane comprises a ground floor let to a Slug & Lettuce bar on a lease expiring in 2041 while the upper floors consist of 17 student accommodation units let to Coventry University. The property produces current annual rental income of £203,316 and the guide price is £2.95m-£3m. 

Acuitus Director, John Mehtab, comments: “This is a substantial prominent town centre property and investors will be attracted by both the long lease on the leisure element and also the strong covenant backing the student accommodation”.

Two shopping centres also feature in the May catalogue. The 51,498 sq ft Roebuck Shopping Centre in Newcastle under Lyme generates an annual income of £102,416 and is being offered with a guide price of £650,000-£700,000.

In Falkirk, the Howgate Shopping Centre which comprises some 185,000 sq ft of accommodation currently arranged as 56 units has a guide price of £500,000. It currently produces annual gross rental income of just over £1,000,000.  Mhairi Archibald of Acuitus comments: “The Howgate Centre is a good example of the type of shopping centre which is attracting entrepreneurial investors who look to take advantage of these assets’ large city-centre footprints and opportunities to drive income”.

The auction also includes a light industrial asset in Norwood, south London, which is being sold on instructions of Joint LPA Receivers. The property currently produces £91,200 annually, and has a guide price of £1.2m-£1.3m.

Acuitus Director, Charlie Powter, comments: “In the recent cycle, we have not yet seen large numbers of distressed assets coming to auction, but LPA Receiverships such as this are now steadily increasing. The pace of this trend may quicken as interest rates rise and refinancing becomes more expensive”.

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