Landmark assets shine at March auction

2nd April 2024

Investment properties in London and Leicester saw strong competitive bidding at the Acuitus live-streamed online auction held on 27th March.

Two prime landmark buildings in Leicester city centre were sold at the auction with strong competitive bidding on both assets. The freehold of a recently refurbished HSBC bank on Gallowtree Gate, which generates annual rental income of £200,000, sold for £2.07m. In addition, the freehold of a well-known Italian restaurant, operating as San Carlo at 38-40 Granby Street, sold for £840,000 at a yield of 6.63%.

David Margolis of Acuitus comments: “Location is so often the key to attract potential buyers, and these two properties situated in the heart of Leicester city centre offered both attractive local geographies and extremely strong covenants from long standing tenants.”

A number of retail assets in North and West London found themselves the centre of investor attention at the auction including:

  • A freehold car showroom and residential investment in Hayes, UB4, sold for £604,000 at a yield of 3.47%
  • A freehold retail and residential property in Crouch End, N8, sold for £860,000 at a yield of 5.18%
  • A freehold retail parade in Greenford, UB6, sold for £1.1m at a yield of 6.5%

Charlie Powter of Acuitus comments: “We saw significant traction in the auction room for these properties, with concerted bidding from multiple parties. This is a good indicator that the market is starting to turn a corner, and the importance of active management, sustainable rents, and change of use opportunities for potential buyers”.

Acting on behalf of Receivers, a freehold town centre supermarket investment in Ivybridge, Devon, occupied by a Co-op supermarket sold for £1.57m. The property currently produces an historic annual rental income of £189,000 on a lease expiring in 2028.

Looking at more development focussed investments, a prominent freehold car showroom asset in Croydon sold for £1.16m at a yield of 6.92%, circa 15% above the reserve price. The tenant who has been in occupation for 45 years recently completed an extended lease expiring August 2034, with a mutual break option in 2029.

Richard Auterac of Acuitus comments: “This auction showcased that assets which are situated in strong central locations displaying good growth prospects, are still very much sought after by investors.

“This makes it even more important for sellers to obtain professional pre-sale pricing advice in order to benefit from the liquidity available in the market and find the pricing level between those looking to sell and those looking to invest. For some assets, there is still a gap between valuations and market evidence, and this can frustrate transactions.’’

Instructions are being invited for the next Acuitus broadcast auction of 2024 which will take place on Thursday May 9th. It will provide online, telephone and proxy bidding. Further details here