2020 Selection of typical sales by sector
Multi-Million Pound Lots
74 lots over £1m have been sold to date against 81 in 2019, across all sectors, with the average price of the higher values lots at £1.8m compared to £2m in 2019 which include the highest ever lot size of £12.4m.
FEBRUARY SOLD £3.675M (7%)
Lot 80 - Warrington
Multi-let indutrial estate of 45 units, £288,833 pa.
MAY SOLD £7M (4.75%)
Lot 19 - Tottenham
Job Centre let to the Secretary of State until 2028 at £345,858 pa.
Retail - Added Value Opportunities
Buyers are as keen as ever on well located mixed use opportunities where asset management can have a meaningful impact on returns, or simply spread the income risk.
JULY SOLD £3.6m (4.0% NIY)
Lot 10 - Barkingside
Two shops with offices above with PD rights for 16 flats
JULY SOLD £1.015M (7.1%)
Lot 19A - Christchurch
Parade of shops with flats and garaging to the rear let at £76,000 pa.
Retail - High Street
Where rents are not excessive, being paid and are sustainable, market town pricing has held up. The converse is true where retail supply is excessive and rents deemed unsustainable in the medium term where yields well over 10% can be required to tempt investors.
JULY SOLD £464,000 (4.9%)
Lot 26 - Oswestry
High street Bank let at £23,800 pa until 2031.
JUNE SOLD £1.42M (18.6%)
Lot 18 - Bournemouth Let on three historic leases at £280,000 pa
Retail - Convenience
Ever popular with the private investor, rents have continued to be paid by convenience store operators and demand from investors has grown this year. Rental resilience and affordability, long leases and modest lot sizes have all driven the spike in investor demand. In total 43 lots have been sold at £34.2m.
JULY SOLD £2.85M (5.9%)
Lot 11 - Kirriemuir Let to the co-Op with annual increases until 2035 at £172,126 pa.
JULY SOLD £1.02M (5.1%)
Lot 15 - Rossett, Wrexham Let to the Co Op at £55,000 pa with RPi increases until 2032
Retail - Suburban
Suburban retail is a sub sector which is showing resilience and some areas will even have benefited from lockdown as workers stay away from City centres and spend money more locally. Typically, rents in the suburbs have been modest and affordable having not seen the rapid growth in city centres which has ironically led to an oversupply of space. These rents are now seen as sustainable which appeals to investors.
JUNE SOLD £1.365M (6%)
Lot 24 - Taunton Out of town parade of four shops with parking let to four tenants at £85,924 pa.
MAY SOLD £521,000 (6%)
Lot 3 - Fleet Let to DP Realty until 2030 with a flat at £32,600pa
Regional offices away from major centres may become more popular as supply has been reduced by residential conversion and tenants look to car borne locations away from City Centres. £11.7m raised in total.
MAY SOLD £1.33M (5.9%)
Lot 18 - Farnborough £232 psft 5,713 sq ft on 1.1 acres part vacant
JULY SOLD £1.4M (7%)
Lot 20 - Egham £249 psft 5,610 sft on .5 acres with scope for redevelopment
The market continues to compete for industrial assets of all lot sizes and factor in rental growth and redevelopment potential.
MAY SOLD £926,000 (6.5%)
Lot 7 - Newbury Six units let at £63,204 pa.
JULY SOLD £2.28M (6.2%)
Lot 45 - Mansfield Estate of six units let at £97,720 pa.
Residential rents have to date not been subject to the same pressures as retail so investors are keen to add mixed use to their portfolios.
MARCH SOLD £1.365M (6%)
Lot 85 - South Norwood Public house and eight self contained flats let at £122,700pa.
MAY SOLD £2.005M (6%)
Lot 15 - Upton Park, London E13 Three shops, offices and three flats let at £129,620 pa with potential to develop further.
Well located public houses, bars and restaurants have continued to appeal where the business model seems sustainable, several tenants have also bought.
JULY SOLD £925,000 (8%)
Lot 61 - Tynemouth, North Shield Substantial public house on the coast let on a long lease at £78,310 pa.
JUNE SOLD £950,000 (6%)
Lot 2 - London Central London restaurant let at £60,862 pa, bought by an overseas buyer.
Investors continue to be drawn to buy term value and will buy into most asset classes.
JUNE SOLD £651,000 (6.5%)
Lot 30 - Stoke on Trent Children’s Care home let on a 15 year lease at £45,000 pa with annual rent increases
JULY SOLD £543,000 (.2%)
Lot 29 - Greenford A ground lease let at £1,250 pa until 2057, offering long term development.