Com­mer­cial sites are big busi­ness

The Jewish Chronicle - - CLASSIFIED -

IN­VESTORS ARE clam­our­ing for com­mer­cial prop­erty. The au­tumn round of com­mer­cial auc­tions showed strong de­mand for shops, of­fices and in­dus­trial units pro­duc­ing an in­come. The Oc­to­ber Acui­tus auc­tion saw the sale of £67.6 mil­lion of as­sets at a suc­cess rate of 89 per cent. Richard Auterac, Acui­tus chair­man, says:“Auc­tion­shave­been­char­ac­terised as a high-yield­ing in­vest­ment en­vi­ron­ment but the sharp­en­ing yields now be­ing achieved in the sale room are no­table. In­vestors who are con­fronted by the min­i­mal — and some­times volatile — re­turns cur­rently avail­able in the eq­ui­ties and gilts mar­kets are be­ing at­tracted by the com­par­a­tively high re­turns that prop­erty of­fers but which, for many high net-worth in­vestors, are sim­ply not ac­ces­si­ble through tra­di­tional prop­erty agency chan­nels.

“The at­trac­tion of com­mer­cial prop­erty in­vest­ment will con­tinue for some time. It will cre­ate a very favourable mar­ket for sell­ers and strong com­pe­ti­tion in the room from a broad­en­ing base of in­vestors, us­ing our highly ex­pe­ri­enced and pro­fes­sional mul­ti­chan­nel mar­ket­place.”

The auc­tion saw 27 of the 75 lots sold achieve prices of more than £1 mil­lion

A Tesco in Streatham, Lon­don SW16, was sold by All­sop for £2.09 mil­lion, 23 per cent ahead of its guide price and fea­tured what is be­lieved to be the high­est price achieved in the UK by a com­mer­cial prop­erty lot sell­ing to an in­ter­net bid­der. A 13,750 sq ft Coun­try­wide Farm­ers store in New­port, let un­til 2022 at a rent of £156,400 a year, sold af­ter strong com­pe­ti­tion to an on­line bid­der for £1.725 mil­lion. Next Acui­tus auc­tion is on De­cem­ber 10.

All­sop held a two-day sale that raised £102 mil­lion with a suc­cess rate of 83 per cent. This re­sult brings All­sop’s cur­rent to­tal for the year to more than £378 mil­lion, af­ter five auc­tions.

All­sop of­fered 210 in­vest­ments, with 22 lots sell­ing for more than £1 mil­lion. The South East con­tin­ued to dom­i­nate, ac­count­ing for 37 per cent of the sum raised, with more than 90 per cent of lots of­fered in the re­gion sold. Largest lot of the day was a mixed re­tail and res­i­den­tial build­ing in Wood Green, N22 — the sec­tor and re­gion with strong­est de­mand. It sold for £2.55 mil­lion, ahead of its guide by 13 per cent.

A Tesco in Streatham, SW16, bring­ing in £81,759.32 a year, sold for £2.09 mil­lion, a 3.91 per cent ini­tial yield, some 23 per cent ahead of guide. This auc­tion also saw good de­mand for in­dus­trial prop­er­ties. Com­pet­i­tive bid­ding was gen­er­ated by a mod­ern scheme of 24 units in Ruge­ley, even­tu­ally sell­ing for £1.26 mil­lion (7.5 per cent net ini­tial yield and show­ing a cap­i­tal value of £58 per sq ft), more than £250,000 above guide. All­sop is now tak­ing en­tries for its De­cem­ber 8 auc­tion.

Lam­bert Smith Hamp­ton’s next sale is on De­cem­ber 7. Among its Oc­to­ber auc­tion high­lights, it sold a free­hold former bank­ing hall in Read­ing at more than dou­ble the guide price. It also sold a free­hold re­tail in­vest­ment, let to Pizza Ex­press, for 35 per cent above guide, to a Lon­don in­vestor.

In the res­i­den­tial mar­ket, All­sop’s lat­est sale raised £49.4 mil­lion. Lots ranged from £900 to £5.8 mil­lion. Reg­u­lated ten­ancy in­vest­ments con­tin­ued to sell well. A four-room first-floor flat, let at £11,778 pa to a reg­u­lated ten­ant in Maida Vale, W9, went for £1 mil­lion.

The es­tab­lished cor­po­rate res­i­den­tial in­vestors also com­peted strongly for as­sured ten­ancy in­vest­ments. A self-con­tained flat pro­duc­ing £10,920 pa in Pur­ley, Sur­rey, went for £191,000, re­flect­ing a yield of 5.7 per cent.

All­sop’s Gary Mur­phy says: “There’s no doubt that the changes to the stamp duty land tax rules have had a cool­ing ef­fect on the £1 mil­lion-plus mar­ket, with cen­tral and Greater Lon­don tak­ing the big­ger hits. De­spite this, buy­ers were still chas­ing good lo­ca­tions where pric­ing showed value.”

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