- September online auction raised £43.3m with 71 lots sold
- Largest lot (a freehold retail parade in Orpington) sells at £3.3m, beating pre-lockdown price
- 12 lots sold at £1m or above
Allsop’s September commercial auction, their fifth commercial auction this year to have taken place online, raised £43.3 million, with 71 lots sold. The online auction was held on the day the UK government announced a new series of COVID-19-related restrictions, further adding to the uncertainty, and resulting in an overall success rate of 77%.
Over the course of the auction, 1,529 bids were placed for the 92 lots offered. The auction was marked by strong competition for particular lots, with the margin above reserve for some surpassing 50%.
George Walker, Partner and Auctioneer at Allsop, said: “As cash buyers continue to act with caution given the uncertain market, this week’s auction saw a sharp focus on opportunities offering long-term development gains and secure rental income in favour of short-term yields.”
“We’ve seen a continuation of the trend observed at our previous auctions this year which is strong demand for sustainable income streams. Another asset class in high demand is bigger lots where buyers can add value in the longer-term and which offer wealth protection and reassurance in a cautious market.”
One example is lot 5 in Hampstead, a barber shop with three flats above sold at £2,015,000 (4.5%), 55% above the reserve price.
All three of the larger lots above £3m offered long-term value, and one particularly desirable lot was sold ahead of its pre-lockdown bid, as follows:
- Lot 34 Worthing, an office investment with development potential sold for £3,065,000 (6.9%) (£129.63 per sq. ft)
- Lot 52 Streatham, an attractive freehold bank and office investment with potential for future development sold at £3,250,000 (5.5%)
- Lot 30 Orpington, a freehold retail and residential parade which beat the pre-lockdown price by £50,000 selling at £3.3m
Retail assets comprised 69% of lots sold, with a wide margin spread ranging from 4.6% (in the case of lot 15, a long-lease Co Op in Honeybourne at £1,205,000) to 18% for a short let retail parade in Wrexham, Clwyd, sold for £600,000 (lot 64).
Allsop’s next commercial auction will be held online on 3rd November.
