The latest Acuitus UK Commercial Property Auction Review attracted a wide range of investors to the King’s Fund in London to hear Q3 perspectives on the sector.
Economist Malcolm White of BW Investor Services put commercial auctions in the context of the wider economy noting that the most recent slowdown in economic growth was due to the removal of the Government’s Covid-19 measures. He also reported that the commercial auction sector was on track for a record-breaking level of sale volumes in Q3: “The 10-year Q3 average is around £150m but we’ve already seen £100m of sales in July and it looks like we’ll get another c£200m from September auctions”.
Stuart Buchanan of Acuitus Finance reported that the recent interest rate rises had not had a substantial affect on the availability of finance but had increased debt service cover provisions and that had impacted the amount of debt that could be secured against rental income. He also advised that any borrowers who were facing a loan renewal should do so well in advance of the due date as “no two lenders are currently alike in terms of their debt service cover approach”.
Acuitus Chairman, Richard Auterac, concluded the session with a review of assets which had recently sold in the room and reported that he expected the growth in the number of assets coming into auctions would continue during Q4.
To view highlights from the seminar, please click on the video below, and if you’d like to attend these seminars in future, please contact ayshea.yardley@acuitus.co.uk
