Strong start to 2012 as Andrews & Robertson raise over ?23.75m at February auction.Investors, traders, and owner occupiers competed for a diverse range of residential and commercial property including vacant houses, tenanted investments, development sites and ground rents setting an encouraging start to 2012 as Andrews and Robertson raised over ?23.75m at its February 21 auction.
Held at London’s Grand Connaught Rooms, WC2, the sale drew competitive bidding from a packed auction room and saw the return of a number of familiar faces as well as new bidders all keen to put their equity into property, add or create value.
Fresh to market local authority properties with potential for refurbishment or redevelopment proved especially popular with buyers. Though there was demand across the price spectrum, larger lots sold particularly well and there was keen interest in lots located within London and beyond.
Eighty four out of 131 lots sold on the day, a 65% success rate. Post sale demand was robust and likely to push revenues and success rates up within days.A portfolio of five properties each with some development potential and offered on behalf of the London Borough of Enfield caused a particular stir resulted in a 100% success rate. Each sold for prices that were well above guides and way ahead of best offers received prior to auction, demonstrating the powerful dynamic that can only be created in the room.
They included:
- A substantial freehold detached corner property arranged as18 self contained studio flats with development potential subject to consents, located in Edmonton, N9 made ?1,405,000.
- Two freehold semi-detached houses split into 11 self contained flats and offered with vacant possession in Palmers Green, N13. Guided at ?650,000 plus they sold for ?1,100,000.
- A 1.5 acre parcel of land in Winchmore Hill, N21, offered without planning consent and a guide price of ?250,000 sold for?710,000.
- The largest lot of the day: Oakthorpe Court, Palmers Green, N13, a sizeable freehold block arranged as 29 self-contained flats and planning consent for hostel use with a guide price of ?1.5m sold for ?2.75m.
- A freehold three floor semi-detached house in Edmonton, N9 guided at ?330,000 sold for ?484,000.
A freehold building in Goldsborough Road, SW8, a “standard auction” lot incorporating two flats, one vacant and the other a long lease investment also drew interest from across the globe, culminating in heated bidding from three telephone bidders, including one in New Zealand. The property eventually sold for ?325,000 to a UK buyer, well above its guide of ?195,000.
Proprietor Robin Cripp, A&R’s lead auctioneer, said: “We had a very busy auction with a catalogue that seemed to have something for everyone. An investment in Dover producing a gross income of ?47,640 per annum had an opening bid of ?300,000 but after much competition sold at?476,000.”A freehold block of seven flats in Aylesbury, Buckinghamshire, some vacant, some on AST’s and two sold on a long lease opened with a bid of ?300,000 and sold for?428,000.
“There is definitely a market for correctly priced stock where-ever the location. Buyers both local, national, and overseas, are looking for a secure haven for their equity and those with the knowledge to asset manage properties in regions as well as in the capital see that there is no better place in which to invest their equity at the present time.
“The return on their investment, whether in terms of rental yields or long term capital growth simply cannot be matched by alternative investment vehicles at the present time.”
Yields on residential investments let on ASTs averaged at 9.8%
Ground rents with 80 years+ unexpired yielded an average: 6.9%
Andrews and Robertson’s next auction is held on March 28 at The Grand Connaught Rooms, London WC2.
We look forward to seeing you in the room.
Robin Cripp
Chairman and Senior Auctioneer