AUCTION UPDATE
BUZZ RETURNS WORDS: NILESH RAJ PATEL, PRINCIPAL, PRIDEVIEW GROUP
to commercial real estate After a difficult 2019 that will be remembered for colossal uncertainty and division, suddenly the UK has become an oasis of calm. This is thanks to the unbelievable twist to the Brexit plot - the Conservative government landing their largest majority since 1987.
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eanwhile uncertainty prevails across many parts of the world, such as China, Australia and the Middle East. In changing times like these, Real Estate is where wealth is stored and preserved, and with the UK back on the map, we are seeing renewed interest in commercial property both from UK residents and overseas buyers.Many investors, armed with their 2020 resolutions, flocked to the first auction of the year held by Allsops, where it was reassuring to feel the buzz of competitive bidding return to the auction market after a quiet 2019.
HASSLE-FREE INCOME
HIGH-YIELD INVESTMENTS
We sold two c oll’s con enience store in estments in this auction with years term certain. he first included a at and was well-located in a mixeduse ward of Watford and sold prior to auction for o er . gross whilst the second included a Post ffice and ubway and occupied a town-centre location in uxton the Pea istrict pa town and sold in the room for . . nterestingly the buyer of uxton had come to bid on Watford but as it had sold prior he thought that it was better to go miles north to uxton where he got the same years of income and same uality tenant just at a better yield. When it comes to long-term wealth preser ation and income generation it’s clear that not all classes of commercial property are e ual especially as we continue to adapt to the rise of e-commerce. ut local con enience stores remain a staple product and it’s no coincidence that in we did o er deals in this subsector.
hat said what attracts so many buyers to commercial real estate is the ariety of needs it can satisfy. Whilst many nay-sayers continue to mourn the eath of etail our more opportunistic buyers are cashing in on the high yields on offer. We acted for an ast sian in estor who came to us ia an ntroducer on the purchase of an unbro en retail parade in shtonunder-Lyne a mar et town miles east of anchester for ca. . m gross . he parade has different tenants including a c onald’s and many of the rents ha e been rebased. his is a fantastic example of how bric s and mortar remains a globally attracti e commodity especially when it can offer a healthy income. n we did almost deals in e ery region of the for a range of pri ate in estors with re uirements ranging from hassle-free income to proper asset management. o if you or your clients ha e resol ed to cut loose in gi e us a call.
PRICE:
£605K GROSS YIE LD: 6.6%
BUXTONI Long leasehold convenience store let for 15 years (no breaks) DESCRIPTION: ca. 4,000 sq.ft. unit with parking let on a 15 year lease LOCATION: Town-centre location PRICE:
M ca.£2.4 D: YIEL GROSS
ca.17%
ASHTONI Freehold detached parade comprising 8 retail units with offices and ancillary above DESCRIPTION: ca. 30,000 sq.ft. multi-let building comprising 8 retail units with offices and ancillary above LOCATION: Pedestrianised town-centre location adjacent to the market
Our expert
IF YOU ARE LOOKING FOR A COMMERCIAL PROPERTY INVESTMENT IN 2020 VIA AUCTION OR PRIVATELY, DO CONTACT ME ON NILESH@ PRIDEVIEWGROUP.COM OR 0208 954 0878. WE HAVE A NUMBER OF OFF-MARKET INVESTMENTS AVAILABLE NOW, AND WILL BE ACTIVELY BUYING AND SELLING IN THE UPCOMING AUCTIONS.
SPRING 2020 I ASIAN HOUSE & HOME
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