Allsop’s commercial auction team raised £53.97m from the sale of 54 UK lots at its recent auction.
There were 22 lots of £1m or more up for sale and the largest lot – a Care UK home in Kenilworth – sold for more than £4m.
A Tesco Express in Oxford let on a new 15-year lease sold for £1,050,000 (5.4% NIY) and a Farmfoods store in Birkenhead sold for £927,500 (6.6% NIY).
Seven bidders competed for a corner building with residential in Bayswater, London, which eventually sold for £1,940,000 (4% NIY).
George Walker, partner and auctioneer at Allsop, said: “Whilst buyer numbers are clearly down, it was good to see competition for the more popular lots where buyers recognise good real estate let at realistic rents, for which they will compete hard. Cash returns continue to be strong as a risk-free alternative to property, but regardless the very best lots are selling at better than the benchmark 6% as our buyers trust the sector.
“The majority of sales were retail, making up 72% of lots sold, but the breadth of stock included industrial, a long-let pub with Marstons plc guarantee, a cinema, and a care home giving buyers a wide choice of stock. With the MPC holding rates at 5.25% again for the second month, the market has had a break from ever rising rates, but the medium term is far from certain and a buyers’ market is likely to prevail for a while.”
Allsop’s next auction is on 12 December.
