Doyouspyan opportunity to make a killing?
ARE YOU a Bond villain? Lambert Smith Hampton is offering a fort in the Solent at its October 11 auction. Guide price is £875,000 — though every Bond villain knows that the real expense is the men in orange uniforms, not to mention the weapon that can destroy the world.
Completed in 1880 as a military base to protect Portsmouth against the French, Horse Sands Fort is being sold as a residential or tourism development opportunity. It is a 73m-diameter armour-plated construction, just outside Portsmouth. Despite the site’s being listed as a scheduled ancient monument, planning permission for conversion into 14 luxury apartments was secured in 2004. Oliver Childs, national head of auctions at LSH, says: “Over the years, we have sold nuclear bunkers, telecommunications masts, former reservoirs, beaches and airfields, to name but a few. Unique assets such as this appeal to buyers with creative vision and we are expecting worldwide interest.
“The fort would offer residents the ultimate in seclusion, fantastic views and a rare chance to reside offshore in a unique location.”
Happily, few buyers or vendors at auction are desperate baddies. But just as Bond fans are comfortable with the familiar cast of characters they are offered every time a new film comes out, auctioneers have grown accustomed to the faces in the auction room.
A year that was meant to bring Brexit ruin to the UK economy, not to mention a sudden change of prime minister and new highs for quantitative Horse Sands Fort, with permission for 14 flats, guided at £875,000 in Lambert Smith Hampton’s sale easing, has remained stable for auctioneers, thanks mainly to the low cost of borrowing cash.
According to research by Savills, in the past two years, the total value of property sold across the whole of the UK property auction industry has risen by £790 million — and an extra 1,300 properties per year — on 20 years ago.
Before the summer break, the commercial property auction sector showed an almost casual lack of uncertainty following the EU referendum, with the Acuitus July sale exceeding expectations and raising £58 million. Investors targeted a range of commercial property as a total of 78 lots sold — 88 per cent of those offered in the sale — with 20 achieving prices of more than £1 million.
Acuitus auctioneer Richard Auterac says: “In times of economic uncertainty, the auction room enables investors to access the type of income returns which are not available through other investment media. This is driving new levels of buyer demand which, in turn, are creating unique circumstances in which to sell assets.”
Acuitus has sold £250 million of assets this year and is now preparing the catalogue for its October 13 auction, which already features more than 70 lots from funds, property companies, banks and receivers.
Barry Shaw of Solomon Taylor Shaw, which represents a clutch of top buyers and sellers at auction, notes that there was a definite slowdown immediately before the referendum. “People seemed to be in shock on the day of the results,” he says. “The slowdown continued afterwards but only for a week or two. The summer was surprisingly busy, although interestingly more people than usual seemed to go away for three or four weeks, probably thinking Brexit would bring non-activity.
“There has been a pickup in commercial property sales, as people want to find yields greater than the paltry interest rates on offer from banks. Bank lending is still difficult, as the paperwork has increased and there is a rise in joint ventures, with people pooling their funds so as not to have to go to the banks.”
Allsop’s July commercial sale was smaller than normal, with some vendors waiting to see the outcome of the referendum when the firm catalogued in early June. “With the referendum
These are unique conditions in which to sell assets’