Allsop’s Commercial Auction Team raised £46.6m in December, from the sale of 52 lots across the UK

• Largest lot sold at almost £5m – Rochdale Exchange Shopping Centre
• Average lot size £897,000 with the sale of fifteen lots of £1m or more
• The final sale of the most turbulent of years brings the total sales to £431m with the sale of 647 lots.

With the portfolio sales concluding mid-year, the last six months have seen a concentration of bigger lots being sold, many having been on the market for many months on behalf of Funds.

The exception to this was Rochdale Exchange Shopping Centre which exchanged contracts 10 days from launch having drawn interest from over 100 parties, it sold ahead of the guide price of £3.5m at a figure approaching £5m.

Buyers have become very focused on value and competed hard for the most popular lots with an improved average of three buyers registered per lot sold.

Other highlights included –

• Tesco sold leasebacks in Enfield and Sandy, Bedfordshire at £1.955m (6%) and £822,500 (6.3%) Tesco Enfield
• WH Smith, Chiswick sold at £2.4m 6.2% WH Smith Chiswick
• Independent Vetcare Practice, Wendover, Bucks sold at £1,250,000 (6.3%) Wendover Heights Vet Centre
• Industrial sales in Honiton £830,000 6.1% (£89psft) and Leominster £1.06M 7% (£60psft) Lot 58 Honiton Lot 50 Leominster

George Walker at Allsop, said:

“Buyers seem to be taking advantage of the increased yield available to build their portfolios at a time when there is continued uncertainty around rates and inflation, they are chasing a strong initial yield on their cash, which seems to be plentiful given the correct price point.

Much of the interest is focused on the better assets, or where the Vendors have made a clear commitment to sell and the guide price reflects that.

Next year, no doubt we will see more sellers accept that the market has moved hugely in the last 12 months and to attract buyers they need to meet buyers’ expectations. This will allow the market to work, and it works at auction.”

Our next commercial auction is on February 8^th 2024