Aberdeen hotel tops Allsop commercial catalogue

The ground rent on a 200-bedroom hotel in Aberdeen is among 22 £1m-plus lots in Allsop’s final commercial sale of 2024 on 11 December. The ground rent investment, let to Moxy Hotel on a lease expiring in 2140 with annual CPI-linked reviews, produces £269,657 per annum and is guided at £4.15m, a 6.5% gross initial yield. It sits within walking distance of Aberdeen Airport. An industrial estate in County Durham is guided at £4.25-£4.5m, reflecting a yield just above 10%. The Newton Aycliffe Industrial Estate in Newton Aycliffe consists of a 85,793 sq ft estate on a 4-acre site. It is fully let to car component manufacturer Ricor North East, part of Ricor Global, on a lease expiring in 2040. It has uncapped RPI-linked rent reviews, with the next review in May 2025, and a rental guarantee of £390,000 from HSBC until 2028. The current rent reserved is £432,927 pa. The catalogue features 68 lots across the UK, with a combined guide price of £70m. Sellers include funds and REITS, with the catalogue also featuring several sale-and-leaseback opportunities brought forward by Farmfoods and Funeral Partners. One of the largest lots, a vacant long leasehold office on Grosvenor Street, Mayfair, W1, has sold ahead of the auction for in excess of the £5.5m guide price. Auction highlights include: Lot 5 – Epsom – a freehold children’s nursery investment, let to Monkey Puzzle Day Nurseries on a new 25-year lease with no breaks, guided between £1.15m-£1.2m (6.52% GIY) Lot 6 – Surrey – a freehold public house and hotel investment, let to Mitchells & Butler and Travelodge with RPI increases, with total rent of £263,835 pa, guided at £3.1m (8.51% GIY) Lot 23 – Aberdeen – a 200-bedroom hotel ground rent investment, let to Moxy Hotel on a lease expiring in 2140 with annual CPI-linked reviews, with total rent of £269,657 pa, guided at £4.15m (6.5% GIY)  Image: Lot 23 © Allsop