The Acuitus September commercial property auction saw the sale of £14.07m of assets with several leisure and F&B investments selling well.
The freehold of the Maggio Lounge on Billericay’s High Street in Essex was one such example of a successful sale of a leisure asset selling at auction for £1.13m, representing a yield of 7.09%. The property had undergone a complete refurbishment and is entirely let to Loungers UK on a new 15-year lease with no breaks at a current annual rent of £85,000.
In Cheltenham, the freehold of two adjoining nightclubs at 1-2 Regent Street sold under the hammer for £1m. Currently let to Stonegate Pub Company until July 2031, with no break option, the property produces annual rental income of £112,000.
David Margolis of Acuitus comments: “Leisure and F&B have been among the strongest growing business sectors in recent years and, despite some headwinds recently, investors are still drawn to well-priced assets that offer strong future returns from established tenants”.
A drive-thru long-let leasehold investment, operating as KFC on the Isle of Sheppey was another example of an F&B asset selling through the auction process. Benefitting from a renewed 19-year term expiring in 2043, with five-yearly rent reviews at a current rent of £95,000pa, this investment sold for £1.47m, at a yield of 6.09%.
The largest lot sold in the auction was a 55,000 sq ft freehold industrial and office park in Rotherham, South Yorkshire, which sold under the hammer for £2.11m. The property comprises a terrace of industrial units, two multi-let office buildings together with parking for 180 cars on a site of 2.95 acres and produces £367,841pa in rental income.
Charlie Powter of Acuitus comments: “The relatively low site coverage combined with existing income streams attracted investors looking at the potential for future asset management”.
In relation to repurposing opportunities, the popularity of such assets was underlined by the sale of vacant former banks in Ramsgate, Mansfield, Windermere, Liverpool, Wallasey, Mexborough, Great Yarmouth and Middleton-in-Teeside.
Acuitus Chairman, Richard Auterac commented: “Whilst this auction perhaps showed a little bit of caution borne out of speculation around the upcoming budget, entrepreneurial investors remain quick to move when they spot assets with secure income streams or development potential.
“In the run-up to the end of the year, investors are looking to position their assets in the context of longer-term strategic objectives and our auctions provide a powerful platform to achieve this.”
The next Acuitus auction will take place on October 30th at 1pm and will be broadcast via livestream on the Acuitus website with bidding online, by telephone and by proxy.
