09
December
2012
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00:00
Europe/London

Record high 89% sales rate sees Auction team nearing £150m

CBRE's latest auction which took place on 5th December produced its best "under the hammer" success rate since launching in November 2011. Transactions closed on the day at an impressive 89%, producing £14.0m, bringing our total auction revenues to date to £147.6m.

Vendors at the auction held at The Millennium Hotel, Grosvenor Square, London W1, included Administrators, Receivers, HSBC, McDonald's, Sue Ryder, Spirit Pub Company, Institutions, Private Property Companies and Private Investors.

An average lot size of £580,000 was recorded, compared to £697,000 in the October sale.
The largest lot of the day, the leasehold interest of the Barclays Bank in Station Road, Harrow, Middlesex, producing an annual income of £160,000, was offered on behalf of Receivers at CBRE Limited. Expected to achieve £2.1m, it eventually sold for £2.21m, a 6.85% yield.

Other Highlights included:
 Lot 3: Glastonbury: A long-dated freehold supermarket investment let to Radstock Co-Operative Society Ltd until 2069. Guided at £675,000/£700,000. Sold for £820,000 (4.67%)
 Lot 10: Falmouth: A bank investment let to Santander (UK) Ltd together with a shop trading as Clarks let for a total income of £86,500pa. Sold for £930,000 (8.90%)
 Lot 12: Shoreham-by-Sea: A thriving modern drive-thru restaurant offering a secure long term income stream leased to McDonald's Restaurants Ltd. Sold for £1.47m (5.78%)
 Lot 23: Thornton Heath: Offered with "No Reserve" on behalf of the Receivers. Ambassador House, a substantial part vacant office/retail investment comprising approximately 78,000 sq ft. Sold for £310,000
 Lot 7: Loughborough: On behalf of a major institutional Pension Fund, the Barclays Bank in the town centre. Sold for £970,000 (5.97%)
 Lot 19: Hertford: On behalf of Receivers at CBRE Limited, a retail investment let to Poundstretcher Ltd. Sold for £495,000

John Townsend, auctioneer, said: "The presence of overseas investors at our auction demonstrates their continuing realisation that investment in UK commercial property remains an attractive and safe option.

"Though the Chancellor's Autumn statement released on the same day as the auction showed the economy remains sluggish and out of kilter with forecasts, we had buyers from South Africa, China and Malaysia buying commercial investments in the room."

CBRE's first sale of 2013 takes place at The Millennium Hotel, London W1, on 27th February. We are already accepting instructions and ideally need to have instructions confirmed by Friday 25th January.

If your financial year closes at the end of March and you wish to bring your properties to the market before then, our February auction will offer the perfect sales platform for you.

If interested, then please contact John Townsend on 020 7182 2538 in the first instance and we will be delighted to provide you with our views as to what level could be achieved, without obligation, or alternatively, please e-mail: j.townsend@cbre.com