"Despite wider economic uncertainty and the Government’s recent fiscal reset, investor confidence remains resilient"
- Alex Neil - Allsop
Allsop has announced that it has raised over £31.8m at its November commercial auction through the sale of 50 lots, with several further properties under offer for post-auction sales. The latest results reflect an overall success rate of 82%.
The highest-value transaction was a freehold building in Newport, Isle of Wight, incorporating two large retail units. The property, lot 11, sold under the hammer for £2.505m. It is majority let to TK Maxx and Mountain Warehouse Ltd and includes around 18,600 sq ft of vacant first-floor storage, as well as a multi-storey car park with 207 spaces.
A total of nine lots achieved prices of £1 million or more, and 13 lots sold at least 10% above their reserve. The average lot size was approximately £640,000. Notably, 64% of lots were located outside London and the South East, contributing 53% of the total sales value. Retail remained the dominant sector, accounting for 62% of lots sold.
Allsop’s buyer survey indicated strong ongoing demand, with 100% of respondents stating they intended to purchase again. Around 85% of buyers were repeat participants, and 77% reported they did not plan to use finance to complete their purchase.
Highlights of the auction included Lot 5, Maidenhead, Berkshire – Freehold convenience store let to Tesco Stores Limited until Dec 2032 at £89,424 p.a. Sold for £1.57m (5.4% NIY), Lot 13, Raynes Park – Corner building with pharmacy and three flats let on ASTs at £100,200 p.a. Sold for around £1.5m (6.5% NIY), and Lot 38, Weston-Super-Mare – Convenience store let to Co-operative Foodstores Limited at £125,000 p.a. until 2034 with future redevelopment potential. Sold for £1.5m (7.9% NIY).
So far this year, Allsop’s commercial auction sales have reached £305.8m from 462 lots, with an overall success rate of 85% and 93 lots selling for £1 million or more.
“Despite wider economic uncertainty and the Government’s recent fiscal reset, investor confidence remains resilient,” said Alex Neil, commercial auction partner at Allsop. “Many of our buyers told us they felt encouraged by the prospect of lower interest rates and viewed now as an attractive time to buy, provided pricing is realistic. The fact that 100% of respondents to our buyers’ survey said they plan to purchase again highlights the strength and depth of demand in the commercial property market.”
Allsop’s next commercial auction will be live-streamed on Tuesday 9th December.
