Reflecting the growing level of investor demand at commercial property auctions, Acuitus saw an exceptional level of registered bidders at its latest auction which raised £16.91m from the sale of 86% of the properties offered.
With some lots attracting around 40 registered bidders, a number of London properties stood out in the sale. A mixed-use investment in Muswell Hill N10 comprising a Pret a Manger store together with a one-bed flat, and a three-bedroom maisonette sold for £1.69m at a yield of 5.77%.
In Covent Garden, an Endell Street lock-up restaurant investment sold for £887,000 at a yield of 5.87% while another restaurant investment in Highgate N6 sold prior to the auction for substantially above its guide price.
David Margolis of Acuitus comments: “These assets demonstrate the innate strength within the London market, with investors looking for properties that benefit from strong revenues and prime affluent locations”.
Elsewhere in Greater London, the freehold of a former NatWest Bank in Surbiton sold for £900,000 reflecting a capital value of £230 per sq ft while two other former NatWest branches in Dover and East Grinstead sold for £325,000 and £360,000 respectively. A Barclays Bank in Staines-upon-Thames let on a recently renewed lease and guided at £1.6m also sold immediately after the auction.
Jon Skerry of Acuitus comments: “The attraction of former banks is primarily their locations on High Streets or other retail hubs. The scope of the properties also tends to offer either active asset management or development opportunities which further drives investor interest”.
A trade counter warehouse investment in Banbury let to Edmunson Electrical attracted the highest number of bidders and sold for £775,000 at a yield of 4.89%.
Elsewhere in the auction, a leisure/public house investment in Romford, trading as the Ivy Tree, sold for £1.22m while a freehold supermarket and residential property in Cosham, Portsmouth, sold prior to the auction for a figure substantially above its pre-auction guide of £1m.
Acuitus Chairman, Richard Auterac: “We’re seeing a number of key trends in the auction room and with our results. The large increase in registered bidders ahead of the auction and also more interest from retailers and other occupiers to acquire the properties they occupy can be seen as signals of a more progressive market with buyers anticipating the start of the recovery phase in the long-term property cycle.
“It might be too early to tell how strong this start of a new capital cycle will be, but both indicators within the auction process and the wider macro environment are pointing towards a more positive year for the commercial property market.”
The next Acuitus auction will take place on July 10th at 1pm and will be broadcast via livestream on the Acuitus website with bidding online, by telephone and by proxy.
