The latest Acuitus auction gave indications of there being greater momentum in the market place as the year-end approaches.
The sale raised £27.25m from at a success rate of 68%. Of the 35 lots sold, 10 achieved more than £1m while the average sale price per lot was £778,000.
Acuitus auctioneer Richard Auterac commented: “This auction definitely showed that there’s now a greater sense of purpose in the market.
“There’s more stock coming into the auction room. Vendors, with whom we work very closely to achieve their objectives, are increasingly realistic about pricing and are more in sync with the market – as demonstrated by the fact that only one lot was withdrawn prior to auction. For their part, buyers are taking a broader view to the scope of assets they will consider.
“We should not get carried away – it’s still a very challenging market which requires a precise approach to pricing – but for those buyers with financing there are substantial opportunities.
“The success in this auction of perennial investor favourites such as the three Sue Ryder charity shops – which all sold for an average yield of 6.24% – was augmented by buyers taking a bolder and more geographically widespread approach. Substantial regional office buildings in Leicester, Newcastle upon Tyne and Glasgow all attracted buyers.”
Olivier House – a 25,773-sq ft freehold office investment in Brighton currently producing income of £293,000pa – achieved the highest price of the auction when it sold for £2.65m.
The auction also featured three LA Fitness Centres in Rugby, Brentwood and Maidstone which all sold for £1.015m, £1.7m and £1.225m respectively.
Richard Auterac commented: “We’re now seeing astute investors with asset management expertise at the regional and national levels coming into the market and backing themselves to enhance their purchases.
“This is very much a market for the seasoned investor and they like our approach because it provides them with the necessary depth of information and market knowledge.
“They are now expanding their horizons beyond the South East in terms of location, and beyond retail in terms of asset type. With the market taking a broader view, auctions become an increasingly effective means for sellers to fully expose assets to the market, know that the whole market place is being covered and not miss out on investor interest.”
Other sales in the room included:
Acuitus is now taking sale instructions for its sixth auction of the year which will take place on December 6th at the Millennium Hotel, London W1.
