Investors at the latest Acuitus auction targeted core assets in London and prime regional locations.
The auction raised £20m from the sale of 24 lots as buyers once again demonstrated a clear preference for properties in the capital or investments in affluent locations let to good covenants.
Acuitus auctioneer, Richard Auterac, commented: “In March, our auction raised £54m with 92% of the lots selling, but this was a tougher sale today and vividly illustrates that investors will only buy assets which strictly meet their entire criteria.
“As the average lot price achieved today of more than £800,000 shows, it is the higher value, higher quality assets that are attracting buyers.”
In London, 65 Tooting High Street – a freehold retail and residential investment – sold for £1.405m a yield of 5.16%and 43 Eden Grove N7 – a block of 15 HMO flats – sold for £2.05m; a yield of 4.37%.
Outside of the Capital, office investments proved popular with the part-let 18,059 sq ft Nelson Court in Stafford which currently produces income of £85,000pa selling for £625,000. In Reading, the 9,166 sq ft multi-let Havell House sold for £1.35m which reflected a capital value equating to £150 per sq ft.
The gradual recovery of well-let, well-located regional retail assets was illustrated by the sale of the WH Smith-occupied 110 High Street Marlborough, Wiltshire. Let to WH Smith until 2024 at a current rent of £115,500pax, the investment sold for £2.25m at a yield of 4.85%.
There was also demand for freehold bank investments with 2 High Street in Great Bookham near Leatherhead – which is let to Lloyds Bank until 2022 – selling for £565,000 at a yield of 4.94%.
Richard Auterac reports: “We have now sold approaching £100m of assets in three auctions this year which is about 25% up on the corresponding volume last year, but today’s sale was a further reminder of the very particular requirements of buyers.
“The continued progress of office investments outside of London is encouraging, and clearly a market for good retail assets continues but buyers remain highly selective.”
Other sales at the auction included:
We are now taking sale instructions for our fourth auction of 2014 which will take place on July 9th at the Millennium Hotel, London W1.
