Acuitus raised £22.97m at its July commercial property auction, selling 88% of the lots offered.
The freehold of Bright Horizons Nursery in Ely (pictured) sold for £1.57m at a yield of 6.6%. The lease was renewed earlier this year for 15-years at a current annual rent of £110,000 with five-yearly RPI-linked rent reviews.
Charlie Powter, of Acuitus, said: “The UK’s private childcare sector continues to grow and investors are attracted by the long-term income that it can offer and, as in the case of this investment, guaranteed five-yearly rental uplifts.”
A 20,175 sq ft multi-unit industrial/roadside asset in Derby attracted multiple bids before selling for £1.095m at a yield of 6.77%. The property comprises three units and currently produces £78,500 in annual rental income.
A retail and residential asset on Mitcham Road in Tooting sold for £975,000 at a yield of 3.69% and a number of other high street retail assets were sold at or prior to auction from across the country.
Jon Skerry, of Acuitus, said: “Retail assets with a residential component continue to prove extremely popular with investors who are attracted by the diverse income streams and potential for active asset management.”
David Margolis, of Acuitus, added: “We had numerous approaches from investors and it’s clear that there’s still long-term confidence in many of the better high street locations across the country providing there is proven occupier demand and the property is not over-rented”.
Richard Auterac, chairman at Acuitus, said: “The overall results of this auction have been really positive. It shouldn’t underestimate how important it is to know the investor market inside out and be able to react dynamically to investor feedback immediately. Everyday counts in a market place where sellers want solutions now and not in six months’ time.
“With interest rates increasing and financing becoming more expensive, it is more important than ever to offer solutions for investors to shape their portfolios to the changed environment.”
Instructions are now invited for the next Acuitus auction which will take place on 21 September.
