Allsop Commercial raised its highest total since July 2007 this week as private investors continued to buoy the market.
Out of 205 lots offered, 163 sold, including 142 in the room, to give a total raised of £95.6m and a success rate of 80%.
That brings Allsop Commercial’s 2014 average rate to 80.5%; the latest auction is the firm’s largest one-day sale.
A strong London market was epitomised by a pub in Islington, N1, let to the Slug & Lettuce chain for 25 years. It was sold by a pension fund to a private investor for £3.2m off a guide of £2.4m – a 3.7% yield. Allsop’s previous commercial auction saw a similar pub in Islington sell for 3.8%.
Auctioneer George Walker said: “Confidence is stronger and perhaps finance is getting better. We’ve seen three auctions in a row with London yields selling for south of 4%.”
Appetite also rippled out to the regions, with a retail block in Ipswich let to Game and the Body Shop selling for £2.6m off a guide of £2.4m-£2.7m, from receivers to a London fund.
Several lots also sold after long spells on the private treaty market, including Salisbury House, an office in Manchester earmarked for residential redevelopment, sold by a Salford-based property company to a Manchester buyer for £2m.
Integrated Dental Holdings also put up a 19-strong national portfolio of dental practices offered on 10-year sale-and-leasebacks, which sold for £6.2m off combined reserves of £4.2m to a private investor.
Walker said: “There’s improving sentiment in the regions. We’ve had lots that agents said wouldn’t sell on the open market achieving asking prices.”
The auction took place at the Dorchester hotel, Park Lane, W1.
chris.berkin@estatesgazette.com
