At its first auction of the year, Acuitus sold £25.3m of assets as investors continued the concerted buying that characterised 2014.
Of 34 lots sold, 10 achieved prices of more than £1m, and the average sale price at the auction was in excess of £745,000.
Acuitus Chairman and Auctioneer, Richard Auterac, comments: “Last year our sales volume was up 30% and this auction continued that trend.
“Investors continue to be highly selective but it is clear that they are more confident about the economic prospects and the potential to successfully asset manage properties to enhance returns.”
The highest price achieved in the auction was £1.85m for the long leasehold interest in the 71,923 sq ft Cobalt Square office tower in Birmingham. The multi-let building currently produces annual income of £248,836 and provides substantial opportunities for re-letting.
Richard Auterac comments: “Recently, we have seen a lot of large regional office properties attracting interest on the basis of their residential conversion potential, but this building was sold purely as an office investment and the income improvement opportunity that it offers”.
Elsewhere in the auction, buyer competition reflected sharpening yields. The 4,488 sq ft 9 Corn Square in Leominster is let to Lloyds Bank at a current rent of £24,000 and on a lease expiring in 2023. It sold for £485,000 at an initial yield of 4.7%.
A freehold tyre depot in Darlington sold for £970,000 at an initial yield of 5.9%. Let to Kwik-Fit until 2032, it produces a current annual rent of £61,261.
Buyers are also increasingly seeking out redevelopment and refurbishment opportunities. A vacant 3,587 sq ft building at 38 Grand Parade
in Brighton encompassing a ground floor shop with residential space on the upper floors and in need of refurbishment , sold for £670,000 against a guide price of £400,000.
Richard Auterac comments: “We have for some time seen the commercial property auction room populated with investors seeking secure, long-term investments but that group of buyers is now being balanced with those who are taking a more entrepreneurial approach and looking for value creation opportunities. The buyer base is expanding rapidly with new national and international buyers acquiring 80% of the lots.
“It is providing sellers with a very positive market into which they can sell properties.”
Other sales in the auction included:
The second Acuitus auction of 2015 will take place on March 26th at the Radisson Blu Portman Hotel, Portman Square, London W1.
