At its sixth and final auction of the year, Acuitus sold £37m of assets at a success rate of 78%. The sale meant that Acuitus has sold close to £240m of property during 2014 – a 30% increase on the firm’s 2013 sales volume.
Acuitus Chairman and Auctioneer, Richard Auterac, comments: “This has been an excellent year for Acuitus and our clients. I believe our results are a reflection of both our proactive and supportive approach to buyers and also the new energy in the sale room”.
At the auction on December 11, several lots sold substantially above their guide prices and there was demand for assets from across the sectors and from throughout the UK.
The sale started in emphatic style with a freehold retail and residential investment in London’s Covent Garden selling at a yield of 2.5%. Comprising a ground floor shop with two flats above sold off on long leases and currently producing income of £30,200pax, 63 St Giles High Street sold for £1.21m – almost twice its £630,000 guide price.
Richard Auterac comments: “This is a vivid illustration of the massive demand for well-located London properties which offer some opportunity for future asset management”.
The highest price achieved in the auction also involved a London lot. A parade of 18 shops in Southgate with the flats above sold off on long leases and currently producing income of £204,325pa sold for £2.76m.
Office properties were also popular with buyers. Beta House in Bradford is a 12,171-sq ft office building let to Yorkshire Building Society and Yorkshire Housing and sold for £630,000 – exceeding price expectations by 27%. Oriel House in Northampton’s Sheep Street comprises 10,042 sq ft of offices behind a period façade. It also sold for £630,000 – exceeding its price expectations by 48%.
The security and long-term income profile of Ground Rent investments remain popular with investors. The virtual freehold interest in the Pentahotel in Reading currently produces income of £54,164pa and sold for £1.37m at a yield of 3.72%.
Buyers are also increasingly attracted to the leisure sector. The Pure Gym in Debdale Park, Manchester, is let on a 15-year lease until 2028 with a break in 2023 and five yearly RPI-linked rent reviews. The current rent is £144,000pa and the investment sold for £1.575m.
Richard Auterac observes: “”Commercial property auctions have sold more than £1.3bn of assets this year and brought hundreds of new investors into the UK investment market. The sector can head into 2015 with confidence founded on growing investor interest, an increased supply of good quality stock and more freely available finance.
“The secondary market must still be treated with caution but, as Acuitus’s last two exceptional auctions have shown, being able to bring the right assets into the sale room at the right price and fully expose them to the market will meet the needs of both buyers and sellers.”
The next Acuitus auction will take place on February 12th, please contact any of our team to discuss entering a property into this sale.
