A children’s nursery in Ely was among the investments that sold at the Acuitus July commercial property auction which raised £22.97m from the sale of 88% of the lots offered.
The freehold of the Bright Horizons Nursery sold for £1.57m at a yield of 6.6%. The lease was renewed earlier this year for 15-years’ term at a current annual rent of £110,000 with five-yearly RPI-linked rent reviews.
Charlie Powter of Acuitus comments: “The UK’s private childcare sector continues to grow and investors are attracted by the long-term income that it can offer and, as in the case of this investment, guaranteed five-yearly rental uplifts”.
Elsewhere in the sale, a multi-unit industrial/roadside asset in Derby attracted multiple bids before selling for £1.095m at a yield of 6.77%. The 20,175 sq ft property comprises three units located on the Electric Estate and currently produces £78,500 in annual rental income.
In London, a retail and residential asset on Mitcham Road, Tooting sold for £975,000 at a yield of 3.69%.
Jon Skerry of Acuitus comments: “Retail assets with a residential component continue to prove extremely popular with investors who are attracted by the diverse income streams and potential for active asset management.”
A number of other High Street retail assets sold at or prior to auction from across the country ranging from Bournemouth to Brighton, Sheffield to York, Southend to Salisbury and Leicester to Lincoln. David Margolis of Acuitus comments: “We had numerous approaches from investors and it’s clear that there’s still long-term confidence in many of the better High Street locations across the country providing there is proven occupier demand and the property is not over-rented”.
Other lots selling prior included a 29,635 sq ft freehold office park in York, being offered on behalf of a major fund, which had active asset management potential and had been guided at £2.75m.
John Mehtab of Acuitus comments: “This was an attractive modern business park investment adjacent to the Monks Cross Shopping Park which offered an opportunity for investors to acquire an institutional-quality asset”.
Richard Auterac, Chairman at Acuitus, comments: “The overall results of this auction have been really positive. It shouldn’t be underestimated how important it is to know the investor market inside-out and be able to react dynamically to investor feedback immediately. Every day counts in a market place where sellers want solutions now and not in six months’ time”.
“With interest rates increasing and financing becoming more expensive, it is more important than ever to offer solutions for investors to shape their portfolios to the changed environment.”
Instructions are now invited for the next Acuitus broadcast auction of 2023 which will take place on Thursday September 21st. It will provide online, telephone and proxy bidding.