Commercial Property Auction Results: HNWIs dominate as October auction raises £64.09m

Commercial properties that sold for more than £1m were again prominent at Acuitus’s latest auction which raised £64.09m with a success rate of 82%.

Acuitus Chairman, Richard Auterac, commented: “Many of the lots offered at prices of sub-£1m through to £3m+ were in the ‘sweet spot’ for High Net-Worth private investors and offered good income streams based on current rental values. The retail sector investment  is particularly benefitting from new sustainable rents and retailers with strong trading results”.

A Sainsbury’s convenience store let on a new five-year lease with residential above on Barnet High Street sold for £2.64m at a yield of 4.83%. In Grays, Essex, a freehold bank investment let on a new 15-year lease to Bank of Scotland sold for £907,000 at a yield of 4.9%.

The highest price achieved in the room was the £3.3m paid for 55-59 Hills Road, Cambridge. The investment comprises five shops, a restaurant, nightclub, six self-contained residential units plus a vacant store with development potential. It produces current income of £181,443 and sold at a yield of 5.11%.

Richard Auterac commented: “The auction featured a large number of good quality shops in prime locations across the UK, and also highlighted investor demand for secure income across the discount store, motor trade and industrial  sectors. The overall low average yield profile of the sale was a reflection of the quality of the assets sold.

“It was an emphatic return to the auction room for investors after the summer break. Whilst there still may be questions about the economic outlook, investors are focusing on the income returns and asset management potential in all sectors of the commercial property market.”

The average price achieved by the lots in October auction was £865,000 with 22 selling for £1m or more.

Other lots which sold in the auction included:

  • Cobham, High Street: a freehold highly reversionary convenience store, office and residential investment  producing annual income of £123,685 sold for £3m at a yield of 3.8%
  • West Wickham, High Street: a freehold motor trade investment entirely let to Kwik-Fit Properties until 2027 with no breaks sold for £1.05m at a yield of 4.6%
  • Kingston-upon-Thames, Market Place: freehold retail investment let to Reiss on a recently renewed 10-year lease with no breaks  sold for £2.475m at a yield of 4.5%

The next Acuitus auction will take place on December 7th at the Radisson Blu Portman Hotel, 22 Portman Square, London W1H 7BG.