Investors eye alternatives as sale raises £34m

25th October 2019

The trend for investors continuing to be active in the real estate market notwithstanding political uncertainty was emphatically borne out at the Acuitus October auction when 82% of the lots sold with more than £34m raised.

Investors set their sights on alternative commercial properties as three ‘alternative’ lots investment properties sold for in excess of £3m. These included a freehold hotel and restaurant investment in St Clears, Carmarthen let to Travelodge Hotels until 2039 which sold for £3.21m at a yield of 5.6%.

A development opportunity in Ware, Hertfordshire comprising eight shops and seven residential flats sold for over £3.05m at a yield of 1.3% which reflected a consented planning permission for redevelopment to create 32 residential units and seven shops.

The asset management potential of retail parades was further reflected by the sale of a property in Allerton Road, Liverpool which comprises seven shops, retail warehouse, two public houses, and a gymnasium plus on-site car parking. It had a guide price of £3m and sold prior to auction.

Acuitus Chairman, Richard Auterac, commented: “Investors are increasingly alive to the opportunities provided by what the market calls ‘alternative investments’ – although these are now firmly in the mainstream when it comes to looking for long-dated income or active asset management.

“While we await a Brexit resolution, there will be increased flows of money targeting these investments especially as some are perceived to have been under-priced through negative sentiment against the sector.

“In contrast, the prices commanded by institutional-grade properties being sold at auction continues to sharpen as investors lock into robust income streams.”

Elsewhere in the sale, four separate lots in Kennington Lane, London with commercial on the ground floor and residential above sold for a combined total of £3.49m at yields of over 5.5%. 

The next Acuitus auction takes place on 11th December 2019 at The Montcalm Hotel, 2 Wallenberg Place, London, W1H 7TN.