Allsop raised a total of £43m from 84 properties sold under the hammer at its December commercial auction, achieving a success rate of 84%. This brings the total raised by Allsop at its commercial auctions in 2019 to £426m from 637 investments.
On the day, 12 lots sold for over £1m with the largest investment, lot 14, a mixed-use parade of shops in Pitsea, Essex, selling for £4.56m, well-ahead of its £4m guide, reflecting the strong demand for long-term, added value opportunities.
This was also evident in the sale of lot 26, a substantial town centre retail parade of shops in Grays, Essex. The investment attracted stiff competition on the day, achieving £1.75m, £350,000 ahead of the guide.
In contrast to the above Essex lots, lower yielding assets in more up-market areas attracted the attention of investors. For example, lot 1, a Café Nero and maisonette in a picturesque building in Chipping Norton in the Cotswolds, sold for £1.01m.
There was also demand for investments in the office sector including lot 36, Churchfield Court, Barnsley, which had been on the market for some time. It was mostly let to Legal and General with some vacant space, sold at £1.62m at £58psft.
Alternative assets retained their popularity among investors with lot 20, a Travelodge hotel in Sutton Coldfield, selling above its guide of £2,500,000 at better than 6%
Other highlights include lot 31, a convenience store in Neath, Wales, which sold to a buyer on a boat in Antigua for £835,000, giving a yield of 5.6%.
George Walker, Partner and Auctioneer at Allsop said: “December’s commercial auction was one of the busiest we’ve seen for some years with strong competition, which is reflected in the high success rate. This shows buyers are taking a view beyond the current political turbulence and this is driving demand for assets offering long-term opportunity to add value.”