Commercial property investors across the UK are turning their attention to the industrial market, which has seen a rise in transactions in the past few weeks, as reflected by activity at Savills’ latest regional auction.
A packed room and competitive pricing saw more than £2.6m raised at the latest Savills’ sale in Nottingham, which took place at the city’s racecourse.
The sale included units six, seven, eight and nine on Bradder Way in Mansfield, Nottinghamshire, which was sold on behalf of Mansfield District Council for £220,000, which was more than 75% above the guide price of £100,000 - £125,000 for the industrial investment opportunity.
Victor Ktori, head of office at Savills Nottingham, commented: “The auction room this month saw significant activity from commercial bidders looking for investment opportunities, with a particular focus on industrial property.
“Offering strong returns in comparison to other sectors, warehouse units with future asset management potential proved extremely popular on the day. Having been retained by Mansfield District Council to dispose of a number of buildings within its portfolio, there will be more chances to purchase similar lots as part of the next Savills regional auction in September.”
Other properties to be sold at the auction included a pair of period cottages on Brewood Road in Coven, Wolverhampton. The properties were listed at a guide price of £100,000-plus and ended up selling in the room for £150,000.
Properties in the Meadows area of Nottingham remained popular, with two lots on Wilford Crescent East and Mundella Road selling for £149,000 and £108,00 respectively, both with a guide price from £70,000.
Elsewhere, the former Wellbeing Centre on Mansfield Road in Sherwood, Nottingham, a substantial detached period property with the potential to be converted into a four bedroom family home, subject to planning permission, saw intense competition from bidders interested in the development opportunity. The hammer finally fell at £410,000, almost double the guide price of £225,000 to £250,000.
Bob Crocker, head of residential auctions at Savills Nottingham, commented: “This auction once again generated considerable enthusiasm from those in attendance, with a number of properties selling for well in excess of the guide price.
“We are continuing to see people from outside of the local area flock to regional auctions in order to take advantage of the massive reductions on residential property and the potential for strong investment returns on housing outside of the South East.”