Commercial Auctions
Bigger Lots
with a Central London focus!
with a Central London focus!
Most capital markets had hoped and expected 2024 to be a year of increased activity stimulated by falling interest rates.
Whilst rates did fall, the pace was slower than hoped and did not provide the hoped for boost to trade, and volumes ended the year on a par with 2023 at £461M (£462M in 2023). On top of this, the impact of the Budget on growth will take a while to comprehend, and Investors are responding with caution.
MSCI reported a drop of over 12% in the volumes of sales between £1M and £10M so on balance the auction volumes held up well relative to the rest of the market.
This relative over performance in the auction market has been driven by the ever longer marketing periods and higher failure rates in the wider market. As we have reported for some time, Vendors of bigger lots have chosen to use the speed and certainty of the unconditional auction contract more regularly which has led to a significant increase in average lot size across the year, rising to £790,000 from £609,000 in 2023.
This has become a recurring theme, year on year and the increase has been most notably in the last 12 months in London, which has made up 30% of the larger sales, a total of £80.2M increasing from 21% and £53.6M in 2023.
In central London we have sold lots in Grosvenor Square, Pall Mall, Shepherds Market, Holborn, Queensway, Baker Street and South Kensington to name a few of the central London lots sold in the last 12 months.
The buyers are happy to compete at auction and the majority of them tell us they are ready and in funds to buy more.
56 Grosvenor Square, London W1
A Grade 2 listed office building offered with Vacant possession sold ahead of the guide at £5,600,000 £1,660 psft. This has already been on the market without finding a buyer and represents one of the highest ever rates per square foot of any auction sale.
New Derwent House, 69-73 Theobalds Road, Holborn WC1
A short let office building in Central London which had been on the market with historic consent for a mixed use scheme. Acting with Farebrother it was sold on an auction contract with vacant possession following a delayed completion to an owner occupier at £5,500,000 £386 psft on the GIA.
56 Grosvenor Square, London W1
A Grade 2 listed office building offered with Vacant possession sold ahead of the guide at £5,600,000 £1,660 psft. This has already been on the market without finding a buyer and represents one of the highest ever rates per square foot of any auction sale.
New Derwent House, 69-73 Theobalds Road, Holborn WC1
A short let office building in Central London which had been on the market with historic consent for a mixed use scheme. Acting with Farebrother it was sold on an auction contract with vacant possession following a delayed completion to an owner occupier at £5,500,000 £386 psft on the GIA.
Archbishop Tenisons School, 55 Kennington Oval, London SE11
This very high profile former school was sold on behalf of Trustees. The existing building comprises 52,119 sq ft on 1.2 acres and lies adjacent to The Oval cricket ground and within 200m of the Oval Tube Station. It was marketed jointly with Rapleys and sold at £7,000,000 on an auction contract.
Larkswood Leisure Park, 175 New Road, Chingford London E4
This retail park is let to Nuffield Health, Tesco and Busy Bees at a total of £681,490pa.
It had been on the market for 5 months by the time Allsop were instructed and it sold at £7.4m 8.6%.
Archbishop Tenisons School, 55 Kennington Oval, London SE11
This very high profile former school was sold on behalf of Trustees. The existing building comprises 52,119 sq ft on 1.2 acres and lies adjacent to The Oval cricket ground and within 200m of the Oval Tube Station. It was marketed jointly with Rapleys and sold at £7,000,000 on an auction contract.
Larkswood Leisure Park, 175 New Road, Chingford London E4
This retail park is let to Nuffield Health, Tesco and Busy Bees at a total of £681,490pa.
It had been on the market for 5 months by the time Allsop were instructed and it sold at £7.4m 8.6%.
Our client, Olim Property have been regular sellers at auction throughout the year and commented on this sale as follows:
“
For bigger lot sizes, we have developed a system with Allsop’s Auction team over many years which works well with joint agents to get deals done. At well over the £7m guide price, the result was well above our expectations.
”
Jo Seth-Smith, Olim Property
Our client, Olim Property have been regular sellers at auction throughout the year and commented on this sale as follows:
“
For bigger lot sizes, we have developed a system with Allsop’s Auction team over many years which works well with joint agents to get deals done. At well over the £7m guide price, the result was well above our expectations.
”
Jo Seth-Smith, Olim Property
The Forum Shopping Centre, Sittingbourne
77,263 sqft enclosed town centre Shopping Centre let to 24 tenants with 7 vacant units, sold at £2,190,000 21.2% and £28 psft.
The Forum Shopping Centre, Sittingbourne
77,263 sqft enclosed town centre Shopping Centre let to 24 tenants with 7 vacant units, sold at £2,190,000 21.2% and £28 psft.