Acuitus raised £18.79m at its March auction bringing the total raised by the firm’s early year sales to more than £35m.
Shopping parades and arcades were prominent among the lots sold at the Acuitus March auction. The freehold of the Arcade shopping centre in Bedford sold under the hammer for £2.605m. This well managed asset with almost 100% occupancy and annual income of £418,590 attracted interest from a number of professional investors. In Cirencester, Bishops Walk shopping centre was sold ahead of the auction for well in excess of £3.1m – also substantially above its guide price.
John Mehtab of Acuitus comments: “These are both attractive assets with good catchment areas and offer the potential to enhance income through active management”.
A prominent city centre bank investment in Leicester sold under the hammer for £2.36m. Let to HSBC on a recently extended lease until 2031 with no breaks, the recently refurbished property produces current annual rental income of £200,000 and sold at a yield of 7.95%
Other lots selling under the hammer included St Peter’s House in Gloucester. An attractive period mixed use building close to the cathedral owned by a charity, it sold for £600,000 at a yield of 8%.
In Wallington, south London, a leasehold trade counter investment – let to Screwfix until 2039 – sold for £1.1m at a yield of 7.73%.
Charlie Powter of Acuitus comments: “In the current economic and global climate, buyers are very discerning about the quality of asset, location, and occupier covenant. To bring properties to market successfully, this is requiring a precise approach to pricing and access to a wide range of serious investors ”.
This trend was illustrated at the auction by a number of Greater London lots in Ashford, Dagenham, and Woodford Green which all sold at yields of under 5%.
Acuitus Chairman, Richard Auterac, comments: “Perhaps the most noticeable trend at our auctions so far this year is the increasing internationalisation of our buyer base.
“We’ve sold assets to continental European and North American investors and this is likely linked to the persisting perception of the UK as a ‘safe haven’ for capital at a time of uncertainty in global markets.
“The huge buying power of overseas sovereign wealth and private equity houses is well-documented but this is now being supplemented by acquisitive high net-worth individuals from across a variety of territories.
“For our domestic investors, continued volatility in equity markets and a lacklustre residential market are channelling a growing number of buyers to the opportunities presented by a diverse commercial property sector.”
The next Acuitus auction will take place on May 6th at 1pm and will be broadcast via livestream on the Acuitus website with bidding online, by telephone and by proxy.
