March auction hits best-ever sale rate

Acuitus, achieved a sale rate of 93% at its March auction as 47 lots sold for a total of £38.27m.

A quarter of the lots achieved prices of more than £1m, and it was the firm’s best-ever sale rate since it was founded in 2010.

Acuitus auctioneer, Richard Auterac, commented: “This result is a reflection of the depth and breadth of investor interest that we now have in the auction room. The successful bidders ranged from seasoned veterans right through to those who were making their first purchase at auction.

“The exceptional sale rate showed that this catalogue provided assets which were available at ‘entry level’ prices of around £120,000 right through to just under £4m.”

The average price achieved for the lots was £814,000 with 1-28 North Parade in London’s West Kensington achieving the highest price of £3.81m. The unbroken retail parade of 28 units produces current annual income of £243,600, and sold at a net initial yield of 6.04%.

The auction was characterised by the continuing growth in the number of telephone bidders. Richard Auterac believes this is a consequence of increased demand from buyers who are local to many of the properties being offered which enables them to participate alongside the national and international investors.

“There’s clearly a greater latent demand which we had expected to develop from local investors who know the locations – and often the individual properties – very well. We are committed to enabling all sources of private equity wherever it is

international, national or local and making it easy for people to access direct real estate. That is now reaping dividends for the sellers we advise and also for the buyers who would not otherwise gain access to the opportunities.

“Our auction on May 21^st will offer a similarly diverse good quality catalogue and presents a great opportunity for sellers to capitalise on the new levels of demand.”

Other sales in the March auction included:

• 53-55 South Street, Romford: a 3,507 sq ft freehold retail investment currently producing £42,000pax sold for £760,000 at a yield of 5.2%
• Telford Plaza, Ironmasters Way, Telford:  a 163,685 sq ft office complex with asset management potential, partly let to CapGemini sold for £3m
• Kwik-Fit, Wells Road, Bristol:  a freehold tyre depot investment let to Kwik-Fit (GB) until 2032 at a current rent of £32,460pax sold for £520,000 at a net initial yield of 5.9%
• 109-110 Western Road, Brighton:  freehold investment with three retail units and three recently refurbished flats above and current income of £53,071pax sold for £1.3m
• 35-40 Friary Walk Worcester and 91/101 Lower Precinct Coventry: both let to New Look Retailers sold just prior to auction for a combined price of over £6.5m
• 35 Walm Lane, Willesden Green, London NW2: ground rent investment producing £242 with reversionary potential sold for £1.5m at a yield of 0.02%

The third Acuitus auction of 2015 will take place on May 21st at the Radisson Blu Portman Hotel, Portman Square, London W1.