The demand for builder’s merchant investments was again in favour at the Acuitus July auction, which followed the successful sales of several Travis Perkins assets under the hammer last year. Considerable interest was shown in two substantial investments in Surrey. The asset at Taylors Hill, Godstone was sold prior to auction, significantly ahead of its pre-auction guide of £2.75m – £2.95m, reflecting a net yield below 7%. The other asset situated on the High Street is currently under contract.
Eight of the nine former funeral parlours offered in the catalogue were sold on behalf of a major corporate client and encompassed locations across the country including Wells, Sheffield and Aberdeen. One of the properties on Lower Addiscombe Road, Croydon saw particularly strong bidding before selling considerably in excess of its anticipated price driven by the development potential.
The residential element of mixed-use investments continues to generate strong demand; a mixed-use asset on Slough High Street sold for £752,000 at a yield of 5.3%. The ground floor shop is let until 2036, while the vacant upper floors have been granted planning permission for conversion into five flats.
In Radlett, Hertfordshire, after strong competition, a retail and residential investment at 285 Watling Street sold for £668,000 at a yield of 6.1%, comfortably ahead of the advertised guide price.
Acuitus Director, David Margolis, commented: “These assets attracted entrepreneurial investors who saw their potential for either residential conversion or alternative uses/redevelopment, as well as traditionally sought after locations.
“We have a hands-on relationship with all our investors right through the sale cycle. They like us listening to them and providing them with an attentive and professional service right up to the hammer falling and beyond.”
A landmark restaurant and residential investment in Mill Hill, London, NW7 was sold prior to auction in excess of the guide.
John Mehtab of Acuitus comments: “This was an exceptional piece of real estate and a rare opportunity. This demonstrates the continued investor demand for leisure investments which have become a popular alternative to High Street Retail because they can offer longer lease terms and index-linked rent reviews.”
Richard Auterac of Acuitus comments: “Our investors have been waiting a long time for some certainty to return to UK PLC. Post the decisive general election result we are expecting investor confidence to continue to strengthen over the summer. Feedback from our clients also suggests the market will receive a further fillip once the interest rate reductions kick in. Heralded by the 100% sale rate of this auction, we could be seeing, at long last, a turn in the market”.
Instructions are being invited now for the next Acuitus broadcast auction of 2024 which will take place on Wednesday September 25th. It will provide online, telephone and proxy bidding.
