The Acuitus October commercial property auction saw strong buyer demand for lots which offered long-term secure income. Offered on behalf of a Cambridge University college, a portfolio of five industrial ground rents located around the Leeds area all sold under the hammer for above their guide prices.
The lots sold at yields ranging from 3.0% to 5.2% and included the 1.7-acre Site 1 in Wetherby which is let until November 2064 at a current rent of £24,500. The next rent review is due in 2029 and 10 yearly thereafter. It sold for £636,000 at a yield of 3.78%.
Other industrial assets also performed well in the auction: a freehold warehouse in Cirencester sold for £1.4m at a yield of 7.4%, while another freehold comprising two industrial warehouses in Coningsby, Lincolnshire sold prior to the auction.
Acuitus Director, Charlie Powter, comments: “The ground rents portfolio demonstrated again the demand for long-term secure income, and industrial assets generally with their large site areas and possible future potential always prove popular with investors”.
Also in Cirencester, a 5,259-sq ft freehold office building let on a new 10-year lease at a current rent of £70,000 sold for £702,000. This reflected a yield of 9.47% and a capital value of £133 per sq ft. With regional offices selectively enjoying more popularity with investors, the property attracted strong bidding from several interested parties.
Among the retail properties on offer at the auction, the stand-out lot was two adjoining units in Bury St Edmunds’ Buttermarket. Let to Cornish Bakery and Brook Taverner, the asset produces current income of £137,700 and sold for £1.43m.
During this year, Acuitus has successfully sold numerous former NatWest banks, and this auction saw the sale of vacant branches in Hartlepool and Chippenham, which sold for £161,000 and £471,000 respectively, the latter against a guide price of £300,000. A former branch in Ashby-de-la-Zouch let to Cash Access UK on a new 10-year lease at an annual rent of £31,000 sold for £363,000.
Jon Skerry comments: “Their strong locations in town centres and the scope these buildings offer for conversion and alternative use have made them extremely popular with entrepreneurial buyers”.
Acting on behalf of a local authority, a town centre multi-storey carpark in Bournemouth with 236 parking bays sold for £1m. The property is held for a term of 999 years from 2002 and generates a concessionary annual rent of £99,726.
In Aberdeen, a heritable hotel investment, trading as Travelodge and one mile from the city’s airport, sold under the hammer for £1.6m. Following the Government’s approval of the Jackdaw gas field in October, there may be more positivity towards Aberdeen’s property market.
Acuitus Chairman, Richard Auterac, comments: “The budget did not cause our market any alarm and it was very encouraging to see only a day later how resolute buyers were at our auction.
“The level of pre-sale interest and registered bidders is indicative of the renewed interest in all types of assets from the long-term secure income offered by ground rents through to properties which offer immediate asset management potential”.
The next Acuitus auction will take place on December 10th at 1pm and will be broadcast via livestream on the Acuitus website with bidding online, by telephone and by proxy.
