Allsop, the UK’s largest property auction house, has raised £31.8m at its November commercial auction through the sale of 50 properties, with further lots under-offer for post-auction sales.
The highest-value transaction was a freehold building incorporating two large retail units in Newport, Isle of Wight (mwhich sold under the hammer for £2.505m The building was majority let to TK Maxx and Mountain Warehouse Ltd and includes vacant first floor storage of c.18,600 sq ft and a multi-storey car park with 207 spaces.
A total of nine lots sold for £1 million or more, while 13 lots achieved prices at least 10% above their reserve. The average lot size was approximately £640,000. Of the lots sold, 64% lots were located outside of London and the South East, contributing 53% of the total sales value. The retail sector remained dominant, accounting for 62% of lots sold.
Allsop’s latest buyer survey indicated strong demand going forward with 100% of respondents expressing an intention to purchase again, highlighting the continued appetite from private buyers to invest in commercial real estate.
Notably, 85% were repeat buyers, and 77% stated they did not intend to use finance to Complete their purchase.
This auction brings Allsop’s year-to-date commercial auction sales to £305.8million from the sale of 462 lots, with an overall success rate of 85% and 93 lots achieving prices of £1 million or more.
Alex Neil, Commercial Auction Partner at Allsop, says: “Despite wider economic uncertainty and the Government’s recent fiscal reset, investor confidence remains resilient. Many of our buyers told us they felt encouraged by the prospect of lower interest rates and viewed now as an attractive time to buy, provided pricing is realistic.
“The fact that 100% of respondents to our buyers’ survey said they plan to purchase again highlights the strength and depth of demand in the commercial property market.”
Allsop’s next commercial auction will be live-streamed on Tuesday December 9.
