A Lincolnshire shopping centre has sold under the hammer for £1.01m, less than half the figure it fetched at auction three years ago.
Income from the George Centre in Grantham, Lincolnshire, has also roughly halved over that time, meaning the yield is almost the same.
It was guided at £950,000 in SDL Property Auctions’ live-streamed 16 November sale and marketed with a strong emphasis on redevelopment potential. The sale price reflects a yield of 14%, based on income of £142,000 from around 50% occupancy.
The 58,000 sq ft centre (lot 85, pictured) produced £367,000 back in 2017, when it was almost fully let. It was marketed by Allsop with an ERV of £488,000 and sold under the hammer at a net yield of 12.77%.
The part Grade II listed building comprises 40 retail units, six office suites and a storage unit, and has a car park with 41 spaces.
SDL senior valuer Carl Finch said the first and second floors offered potential for conversion to residential.
The shopping centre sale contributed to a total of £14.6m from SDL’s national sale, with 105 lots finding buyers from 130 offered – an 81% success rate. However, more than 40 lots were withdrawn prior.
Terraced properties in need of refurbishment proved ever popular with landlords. In Derby, two adjoining houses on Richmond Road (lots 2 and 3), both guided at £45,000-plus, attracted strong interest: one sold for £89,000 and the other for £84,000. Timed auctions held throughout the month also produced some strong results. A three-bedroom semi-detached refurbishment property in Blakenhall, Wolverhampton, was sold in partnership with Nick Tart Estate Agents. It attracted 125 bids from 10 different bidders, selling for £149,000 from a guide price of £76,000-plus.
Last month SDL became one of 15 industry suppliers selected by estate agency professional body NAEA Propertymark, which represents members that practise from 12,000 offices.
SDL’s final national sale of the year will be on 18 December.
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