Retail parades proved to be popular lots at Acuitus’ July commercial auction, which raised £28.37m.
The largest lot sold under the hammer was an unbroken freehold retail and residential parade in Woodley, Reading (pictured), which sold for £4.06m at a yield of 8.75%.
Another retail parade in Oadby, Leicester, which counts Costa and Marks & Spencer as tenants, sold for £1.85m at a yield of 7.89%.
David Margolis, from Acuitus, said: “We have seen a number of parades being offered at our auctions over the past 12 months and they are popular with investors for the combination of income stability, asset management potential and opportunities for development.”
Other auction highlights included the sale of a freehold retail and residential parade on Chiswick High Road, which sold for £2.5m at a yield of 5.9%, and a vacant former bank in Staines-upon-Thames, which attracted multiple registered bidders and sold for £1.45m off a guide price of £900,000.
Richard Auterac, chairman of Acuitus, said: “In terms of investor sentiment ‘glass half empty’ seems at last to be turning to half-full. As a consequence of global uncertainty, there is more interest in the UK commercial property. The sector has always been seen by investors as a safe haven for capital, and with higher corporate profitability now aligned with today’s rebased rents, assets are providing some substantial high income returns.”
He added: “Is this sale an early indication of the long-awaited upward trend in the private investor market? Will there be increased supply to satisfy increased demand? We await our next auction in the autumn with great interest.”
