Builders merchants drive sales at Acuitus auction
The demand for builders merchant investments was strong again at the latest Acuitus auction, following on from the sales of several Travis Perkins assets under the hammer last year.
Considerable interest was shown in two substantial builders merchants in Surrey. One, at Taylors Hill in Godstone, was sold prior to auction, significantly ahead of its pre-auction guide of £2.75m-£2.95m, reflecting a net yield below 7%. The other asset is situated on the High Street in Godstone and is currently under contract.
Eight of the nine former funeral parlours offered in the catalogue were sold on behalf of a major corporate client. They were spread across the country at locations including Wells, Sheffield and Aberdeen. One of the properties on Lower Addiscombe Road in Croydon saw particularly strong bidding before selling well in excess of its guide, driven by the development potential.
The demand for builders merchant investments was strong again at the latest Acuitus auction, following on from the sales of several Travis Perkins assets under the hammer last year.
Considerable interest was shown in two substantial builders merchants in Surrey. One, at Taylors Hill in Godstone, was sold prior to auction, significantly ahead of its pre-auction guide of £2.75m-£2.95m, reflecting a net yield below 7%. The other asset is situated on the High Street in Godstone and is currently under contract.
Eight of the nine former funeral parlours offered in the catalogue were sold on behalf of a major corporate client. They were spread across the country at locations including Wells, Sheffield and Aberdeen. One of the properties on Lower Addiscombe Road in Croydon saw particularly strong bidding before selling well in excess of its guide, driven by the development potential.
The residential element of mixed-use investments continues to generate strong demand. A mixed-use asset on Slough High Street sold for £752,000 at a yield of 5.3%. The ground floor shop is let until 2036, while the vacant upper floors have been granted planning permission for conversion into five flats.
In Radlett, Hertfordshire, after strong competition, a retail and residential investment at 285 Watling Street sold for £668,000 at a yield of 6.1%, comfortably ahead of guide.
A landmark restaurant and residential investment in Mill Hill, London, NW7, which was marketed for the first time in almost 50 years, was sold prior to the auction.
Acuitus chair Richard Auterac said: “Our investors have been waiting a long time for some certainty to return to UK plc. Post the decisive general election result we are expecting investor confidence to continue to strengthen over the summer. Feedback from our clients also suggests the market will receive a further fillip once the interest rate reductions kick in. Heralded by the 100% sale rate of this auction, we could be seeing, at long last, a turn in the market.”
Acuitus will hold its next sale on 25 September.
Image © Acuitus
