A £5m Co-op in East Dulwich, SE22, was among 30 £1m-plus lots to sell at Allsop’s October commercial auction this week.
The auction, which took place at London hotels Claridge’s, W1, and The Berkeley, SW1, on 21 and 22 October, raised a total of £113.5m.
Of the 281 lots offered, 200 sold, reflecting a success rate of 71%. A total of 37 lots had guide prices in excess of £1m, 81% of which sold.
Aviva Investors, Canada Life Investments, CBRE Global Investors and Threadneedle were among the vendors selling the high-value lots.
The freehold Dulwich Co-op and flats above, located on Lordship Lane, was the largest lot sold, selling at £75,000 above the asking price and reflecting a yield of 5.51%.
Allsop partner George Walker said: “When an asset in a good location is a mix of residential and commercial assets, with an opportunity for future development, the market is very strong.
“This is a very meaningful sale that shows the tremendous demand for these sort of assets and the strength of the private investor.”
A freehold bank, shop and residential property on East Grinstead High Street, West Sussex, also attracted competitive bids. The 6,408 sq ft block has a rental income of £97,600 pa and is let to Barclays until 2026. It sold for £1.9m, reflecting a 5.22% yield.
“That’s four or five times on any return in cash in the bank,” said Walker.
A 4,427 sq ft freehold pub on Queens Road, Twickenham, with a rent roll of £85,000 pa also sold for £1m, reflecting a yield of 8.65%.
Walker added: “This has been a very strong year, and today has been a continuation of this positive result.
“High-yielding asset classes, a surplus of cash and the return of finances to the market are the driver behind this strength. We are going to beat last year’s statistic without any question.”
