More than £8m of property was sold through online auctions on a single day last week.
The largest lot was the failed Angelgate residential development in Manchester (pictured above), which was sold for £5.2m in an online auction managed by Lambert Smith Hampton on behalf of administrator Moore Stephens.
It was snapped up on Thursday 26 April by Far East Consortium, which owns the neighbouring £200m Meadowside development (scroll down to find out more).
Online auctioneer BidX1 raised more than £2m in its second UK sale, achieving a 70% success rate, while Allsop raised more than £1m from a portfolio of Local Shopping REIT assets.
BidX1’s second UK sale
BidX1 offered 40 residential and commercial lots throughout the UK.
Successes included two adjoining semi-detached houses divided into 12 units in Clarendon Road, Liverpool, which made £489,000 against a reserve price of £360,000. The investment produces £19,000 per annum.
The lot had been offered in BidX1’s debut UK auction in March at £415,000, but failed to sell. However, the lower reserve price fuelled a bidding war last week, with 89 bids placed.
One of the other sought-after lots comprised three houses with a 0.37-hectare site in Londonderry, which sold for £265,000 against a guide of £200,000. A mid-terraced two-bedroom house in Middlesbrough, guided at £21,000, sold for £46,000.
BidX1 Founder Stephen McCarthy said: “The online platform is bringing high quality lots to a wider scope of buyers with successful results.
“We are continuing to break down barriers within the auction market as our model gains popularity, particularly among the private equity and fund management vendors who appreciate its benefits.”
McCarthy said he was pleased with the 70% success rate but disappointed that two London assets – its first – did not attract bids.
The London lots were a vacant terrace house split into two flats in Camberwell, SE5, with a reserve of £825,000-£855,000 and a vacant two-bedroom flat in Providence Wharf, E14, with a reserve of £595,000-£635,000.
“We know that London is extremely price sensitive at the moment and my view is that pricing needs to be looked at for those properties,” McCarthy said.
Allsop’s successes
Meanwhile, on the same day, Allsop sold six of the eight lots offered for the Local Shopping REIT.
The REIT has been disposing of its assets since 2013 in order to repay debt and return remaining capital to shareholders.
Internos, now Principal Real Estate Europe, was appointed to liquidate its 600-plus portfolio.
The latest portfolio was offered exclusively online.
A takeaway pizza shop and maisonette in Salford, Manchester, producing £17,000 pa, generated the most intensive bidding: 49 bids were placed by seven bidders.
It sold for £211,000, having been listed with a “reserve not to exceed £150,000”.
The highest price achieved was for a Betfred bookmakers and residential ground rent in Lewes, East Sussex, listed at £235,000 and producing £21,100 pa.
It attracted 38 bids from five bidders and sold for £277,000.
Commenting prior to the sale, Rupert Wallman, fund manager at Principal Real Estate Europe, said the firm felt “it was an appropriate platform for us to auction some of the Local Shopping REIT portfolio, and that it would help us lower transaction costs, particularly for smaller lots. In time, we believe online auctions will grow into an important marketplace for UK commercial property”.
The long wait for Angelgate
LSH was instructed to sell the 1.96-acre Angelgate site in March after developer Pinnacle (Angelgate) went into administration in September 2017.
The developer – a special purpose vehicle for Pinnacle – had received planning permission in 2013 for a £77m, 344-home scheme. Ongoing delays meant the buyer-funded project did not begin, despite £30m of investment.
The site borders FEC’s £200m Meadowside development of 756 flats and townhouses around Angel Meadow in the Noma neighbourhood. It was the sole bidder for the site, which was offered at £5m-plus.
Gavin Taylor, regional general manager at FEC Manchester, said: “Manchester City Council market data shows the demand for new homes in Manchester city centre will continue to exceed supply.”
FEC hopes to submit revised plans by the end of 2018.
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