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PROPERTY AUCTIONS
30 JAN 2013
Confidence Soars As Auctioneers Start 2014 BY ELI ZVI
As the first Auctions take place this year auctioneers are confident of a really good start. Allsop have their commercial auction of 87 lots on February 4 and are confident of a successful sale, they include an unbroken parade of 5 shops and 5 flats plus an advertising hoarding with rents totalling £189.000 the guide price is between £2.5m and £2.7m there is also a job centre in Birmingham let to the Government for £117,000 it comprises of 11,200 sq.ft of offices with parking for 24 cars. Guide price is in excess of £1,1m. Allsops residential Auction takes place on February 13 and includes a Freehold detached building with car park in Bushey and has planning for conversion into 3 flats and one 3 bed detached house guide price is £850,000 -£900,000. On the market for the first time in 25 years is a terraced building in Willesden Green arranged as 2 one bed flats and one 2 bed flat guide price is between £500,000 and £550,000. Lambert Smith Hampton has its auction at the Millenimum Hotel on February 24 and have a long leasehold retail investment in Clapham Park Road SW4 currently let until 2018 with a rental income of £15,000, they are also offering , with vacant possession a pair of retail/ residential buildings which require refurbishment at 1 and 3 Southampton Road London NW5 Strettons enjoyed an average of 78% sold last year with sales reaching £70m their next auction takes place on February 10. Strettons opened a West End office during 2013 Richard Auterac of Actuitus is buoyant about 2014 with their next Auction taking place on February 13, Among the comprehensive list of properties are an office investment in Leeds, Hume House in Tower House Street currently let and producing £188,000 p.a.x. There are five individual freehold retail investments in Southend, tenants include Specsavers and Thomson Travel current rent over £178,000 p.a.x. Acuitus are also offering a Bank investment in Bristol
Road South Birmingham with the majority let to HSBC Bank and the West Bromwich Building Society, the building contains 4 self contained flats, current rent is £115,800 with one flat vacant and to be let. Andrews Scott Robertson have their auction on February 17 at the Hotel Russell and are offering a first floor purpose built 2 bed flat in Finchley N12 with a long lease it has full vacant possession, they also have a former public house in South Croydon arranged as 10 bed sits with permission to covert to 2 x 2 bedroom houses. Savills enjoyed an 89% success rate in 2013 with over £320 million worth of properties sold, they have 265 properties for sale at their next auction on 10/11 February including a 3 bed semi detached house in
Stanmore with garage but need renovation they also have a large 6 bed house in Hampstead NW3. Auction House London sold 90% in 2013 and sold 100% at their December Auction, their next Auction is on February 27 McHugh and Co have their next Auction on 26 February at BAFTA in Piccadilly, McHugh recently sold a property in Marylebone which was the highest value residential lot sold at Auction, it went for £3.74m With increasing number of properties coming on to the market and banks being encouraged to lend the industry is looking forward in anticipation to a good year ahead. When the results of the February Auctions are announce we will have a clearer picture, but it does look decidedly better.
Lake Business Park in Milton Keynes sold by Allsop & Co. for £26.65m 8.6% yield.
P32 HAMODIA
COMMERCIAL PROPERTY LEGAL SERVICES Dealing with all commercial property transactions including: „
Landlord and tenant matters Including lease renewals, new leases and licence applications
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PROPERTY AUCTIONS
30 JAN 2013
Buying and selling commercial property ,QFOXGLQJ DXFWLRQ VDOHV SULYDWH WUHDW\ DQG UHÂżQDQFLQJ Experienced in acting for both Landlords and Tenants With particular emphasis on Landlords with medium sized portfolios (upwards of 15 properties) For further information contact Lisa Raymond Tel: 020 8359 1226 lisa.raymond@keystonelaw.co.uk Lisa has over 20 years experience as an Associate and Partner in OHDGLQJ &LW\ ÂżUPV DQG QRZ SUDFWLFHV ORFDOO\ LQ +HQGRQ
Lambert Smith Hampton 11am on 24 February 2014 at Millennium Hotel On behalf of Cambridgeshire, Camden, Carmarthenshire, Cardiff, Denbighshire, Derbyshire Dales, East Lindsey, Essex, Lambeth, Middlesbrough, Newport, Northamptonshire, Peterborough and Sandwell Council, as well as Joint LPA Receivers, Trustees, Major UK Banks, amongst others. A variety of commercial and residential property throughout the UK for investment or owner occupation (unless sold prior or withdrawn), including:
56 Clapham Park Road, London SW4 7BG • Long leasehold retail investment • Let to individuals until 2018 • Current rent £15,000 per annum • Potential for alternative use (subject to consents)
1 & 3 Southampton Road, London NW5 4JS • A pair of freehold retail/residential buildings • Requiring refurbishment • Vacant possession
73 Leigham Court Road, London SW16 2NR • Freehold care home investment • Let to Mencare Holdings until 2018 • Current rent £70,000 per annum • Potential for alternative use (subject to consents)
11 Southampton Road, London NW5 4JS • Freehold retail/residential building • Requiring refurbishment • Vacant possession Ground Floor, 33/35 York Street, Twickenham TW1 3JZ • Long leasehold estate agency investment • New 10 year lease to Spicer Haart • Current rent £42,500 per annum
To receive our auction catalogue register online at www.lshauctions.co.uk or call 0906 500 1105 (Calls to 0906 500 1105 cost ÂŁ1.50 from a BT landline. The cost to call from other networks and mobile phones may vary.)
Contact the team: 020 7198 2000 Auction Venue: Millennium Hotel, 44 Grosvenor Square, London W1
BY MARK DANSKY
It has been turbulent times for commercial property since the late summer of 2007 but things are starting to look up. In the summer of 2013 there were early signs of increasing buyer demand and improving market sentiment, specifically in our auction room. We tentatively suggested that the market may have reached a turning point. Confidence certainly appeared to be returning with investors firmly in buying mode and becoming increasingly comfortable about moving up the risk curve. Recent high volume of sales by our private treaty team and successful results in both our October and December auctions have confirmed this view. We expect the market to continue rising in the short to medium future for a number of underlying reasons. Primarily there is substantial room for recovery particularly in secondary property. The average peak to trough price decline during these cycles has been 26% with the current downtown more severe at 37%. On a broader outlook, economists on average are forecasting that the UK economy will grow by 2.5% during 2014. This is against a background of continued low interest rates and growing employment figures. Historically competitive bank finance has generally followed approximately a year behind a rising property market. We therefore expect funding to become more readily available during this year which will result in further underpinning of the market.
So what to buy?
February Auction
1A Lithos Road, London NW3 6DX • Freehold commercial studio/storage investment • Let to an individual (holding over) • Current rent £3,400 per annum • Potential for alternative use (subject to consents)
Commercial Property Outlook 2014
www.lsh.co.uk
Whilst considering investment in commercial property there is merit in analysing each sector separately. Each sector has a variety of features which will make them suitable for an individual investor. Personal preferences such as risk profile, timescale and location will have a bearing on stock selection. High Street retail remains the most popular sector for private investors accounting for majority of our auction sales (approximately 65%). As a result this asset class is the most ‘liquid’ in terms of any future requirement for a sale that may arise. The High Street has altered over the downtown due to a change in shopping patterns such as internet shopping. This has resulted in a narrowing of prime shopping areas and a reduction in rents. Careful research therefore needs to take place on the tenant’s financial credibility, re- letability of the unit and most importantly the current market rent. In the office sector, London has outperformed other regions. It is also therefore the most congested and sought after market for investment, particular for overseas investors seeking a safe haven for their money. This has caused a ripple effect in core M25 and South East markets and subsequently in other regional markets. The lack of available development finance has stymied speculative development since 2007. This has caused an acute shortage of prime Grade A office space in most core locations and has led to upward pressure on rents as tenants have little choice in terms of quality. The market for lower grade offices is significantly softer both on the occupational and investment markets. Purchasers are wary of high vacant holding rates (i.e busi-
Mark Dansky, Surveyor in the Allsop National Investment Team.
ness rates, insurance and security etc) and capital expenditure required, specifically on expensive equipment such as air conditioning, lifts and heating. Furthermore current Government legislation is also pointing towards a minimum energy efficiency requirement which again may lead to expensive bills. However on a positive note recent easing of planning restrictions relating to ‘Permitted Development Rights’ (simplifying the planning process for residential conversion) has lent a new lease of life to previously obsolete and redundant office buildings. Additionally, relocation costs for most tenants are prohibitive and there is potential to negotiate lease extensions in return for a reduction in rents or a rent free period. Last, but not least, is the logistics and warehousing sector which has significantly outperformed others in terms of overall returns. In a similar vein to offices there has been little to no speculative development since the downturn leading to a shortage of good quality industrial units. This is having a positive effect on rental growth and tenant demand. There is growing demand from traditional retailers and online retailers for logistics and distribution sheds to supply their internet shopping platforms. Further occupational pressure on warehousing will also come from the British manufacturing sector. This sector accounts for 10% of the economy and is being forecast to grow by 2.7% this year. This is well ahead of other major Western European economies such as Germany 1.6% and France at just 0.7%. Adversely, obsolescence can be a significant factor over time as tenant requirements are moving towards modern high bay well specified units. This year will no doubt have its challenges, but we see no reason why the current momentum in the market should not continue well into the New Year, if not until the general election in 2015. In a low interest rate environment the appeal of a tangible income producing asset and a hedge against inflation should continue to attract buyers, particularly as the availability of debt improves. This will be reinforced by improving tenant demand and stability as the economy grows. The continued high volume and high success rates of our market leading auctions in addition to the success of our National, West End and City Investment teams provide us with a truly unrivalled knowledge of pricing, buyers and market conditions. This we hope will enable us to have another successful year for our clients in 2014.
PROPERTY AUCTIONS
HAMODIA
30 JAN 2013
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Acuitus Assesses 2014 Auction Prospects
Richard Auterac, Chairman of Acuitus.
Last year, leading specialist commercial property auction house, Acuitus, sold close to £200m of assets. Its 2013 auctions brought more than 300 properties to market and achieved sales from £50,000 through to the £3.65m achieved for the Waterdale Shopping Centre in Doncaster and more than £4m for a prime retail investment on London Road North,
Lowestoft. A 1,912-sq ft store at Camden Walk in London’s Islington let to Ben Sherman sold for £1.66m at a yield of 5.1%. More than a quarter of all lots sold by Acuitus in 2013 achieved prices of more than £1m. Looking ahead to this year, Richard Auterac, Acuitus’s Chairman & Auctioneer, comments: “The auction room will continue to be a preferred medium for bringing distressed assets to market but we are now also seeing an increased number of retailers carrying out sale-and-leasebacks to fund future expansion and this is a positive sign of increased economic growth. “The distressed property situations which date from the pre-crash boom now being gradually addressed, and investors are responding to the brightening outlook. This process is bringing more stock into the auction room and creating a more fully functioning market than we have seen for some considerable time. “Sellers — whether they are receivers, banks, property companies or private individuals - should be excited by the energy in the marketplace and the opportunities it now
Law Firm Offers City Alternative When it comes to choosing a solicitor many companies want to use a City law firm but then discover the high rates charged and seek to use alternatives. One law firm is proving to be an alternative to the City firms and features only senior lawyers who have previously been at Senior Associate or Partner Level but without the price tag to match. Keystone law does not use Juniors or trainees so you can be assured that your matters are handled by someone of sufficient experience and gravitas each time and every time and no matter how small or large the transaction is .
presents. “Our December auction illustrated that investors remain very selective but will buy in any sector if the investment characteristics are right or if the price presents scope for achieving a proper return following asset management. “The fundamentals for buying this
year will remain the same and it will continue to be a market more for experienced investors.” Acuitus is now taking lots for its first auction of the year which takes place on February 13 th at the Millennium Hotel, Grosvenor Square W1. More details at acuitus.co.uk
1/1a Camden Walk, Islington Green, London N1 8DY, Sold by Acuitus 17th October 2013 for £1,660,000 a net initial yield of 5.17%.
Commercial Property Auction Thursday 13th February 2014 On behalf of The Defence Infrastructure Organisation, The Co-operative Estate, Cushman & Wakefield Investors, Sapcote, Wesleyan Assurance, F&C Reit Asset Management, M&G Real Estate and Joint LPA Receivers at DTZ and GVA amongst others.
Lots including: TRADE COUNTER INVESTMENT
Glastonbury BA6 9FW Units 1, 2 & 3 Genesis One, Marlands Business Park Two freehold retail warehouse investments. Tenants trading as Topps Tiles & Screwfix.
Lisa Raymond is a senior commercial property specialist at Keystone Law with particular expertise in retail and leisure property and part of a wider team of 22 dedicated commercial property specialists supported by additional teams of planning, construction and environmental lawyers.
Rent: £75,000 p.a.x.
LEISURE INVESTMENT
Dorchester DT1 1UJ The Co-op, 30 Cuckoofield Lane, Norwich
Since Lisa qualified over 20 years ago she has worked at leading City Firms Allen & Overy, SJ Berwin and DAC Beachcroft and has acted for a wide portfolio of clients including investors, blue chip property companies, household name tenants and smaller start-ups. Lisa is particularly experienced with landlords owning a portfolio of properties handling the usual range of property transactions from buying and selling to the granting of new leases, options and refinancing. More recently she has acted on the recent purchase of a hotel and the assembly of a site for development purchased by way of option from a number of owners. Lisa also acts for some national brand Tenants in their acquisitions, disposals, lease surrenders and assignments. Lisa invites you to get in touch to discuss your property legal requirements and assures that you will be pleasantly surprised at the fixed fees and agreed rates she can offer. A City service without the price tag.
Hume House, Tower House Street, Leeds
OFFICE INVESTMENT
Great Yarmouth NR30 2BA
Leeds LS2 8NT Hume House, Tower House Street Let to Trillium (Prime) Property GP Limited.
11A and 11B King Street and 11-13 Theatre Plain, Hamilton, Sandy Entirely Let to H Samuel Ltd Until Sept 2022.
Rent: £188,000 p.a.x.
Rent: £115,000 p.a.x.
RETAIL INVESTMENT
Luton LU1 2AP
Norwich NR14 8BA
65-67 George Street Ground & part first floors let to Savers Health & Beauty Ltd on a new 10 year lease until 2023 (subject to option) with 2,795 Sq ft vacant possession.
The Co-op, 30 Cuckoofield Lane, Mulbarton Trading as Co-operative Supermarket on lease until 2027 (subject to option). Rent: £72,000 p.a.x.
Rent: £65,000 p.a.x.
London SE13 5JH
Southend-on-Sea SS1 1JF
98 Lewisham High Street Let to British Heart Foundation until 2023. Includes a self-contained 5 room maisonette.
82A, 82B, 121, 123 & 125 High Street Five individual freehold retail investments, tenants trading as Specsavers, Thomson Travel & others.
Rent: £74,400 p.a.x.
Rent: £178,266 p.a.x.
Peter Cunliffe: +44 (0)20 7034 4850
Prezzo, 6 High West Street Let to Prezzo plc on a new 25 year lease back expiring 2039 (no breaks). Rent: £60,000 p.a.x.
Bingo Halls, Rotherham Scarborough & Blyth Freehold leisure investments let to Mecca on a 15 year lease until 2021 with RPI uplifts. To be offered as 3 individual lots. Rent: £431,829 p.a.x.
BANK INVESTMENT
Birmingham B31 2NN 770-772 Bristol Road South, Northfield Majority let to HSBC Bank & West Bromwich Building Society. Includes 4 self contained flats. Rent: £115,800 p.a.x. with 1 flat Vacant and to be let.
Nottingham NG5 7EG 134-136 Front Street, Arnold Let to NatWest Bank plc until 2023. Rent: £59,000 p.a.x.
www.acuitus.co.uk
30 JAN 2013
PROPERTY AUCTIONS
3 Bed Edgware Semi Within The Eruv for Auction Strettons have been instructed to offer this extended semi-detached house which has recently been redecorated together with a detached 2 bedroom annex in the rear garden, for sale by auction. The house is currently subject to an Assured Shorthold Tenancy (AST) at a rent of £1,600 pcm, equivalent to £19,200 pa. The rear annex is vacant and so may offer an opportunity to increase the rental income. Located within the Eruv off Deans Lane approx. ½ mile east of Edgware underground station (Northern Line Zone 5) and the Broadwalk Shopping Centre and the further recreational and leisure facilities of Edgware are close by. The house has been extended to the rear to enlarge the kitchen and dining area. In the rear garden is a single storey 2 bedroom annex that is currently vacant and is not included within the AST agreement so could be let sepa-
rately to increase the current rent of £19,200pa. The property is to be offered by auction on the 10th Feb by Strettons at the Grand Connaught Rooms, Great Queen Street, London, WC2 B 5DA starting at 11 am.
For deatils of forthcoming Property Supplements, speak to our Sales Director Alan Rubenstein on 020 8442 7777 or email alan@hamodia.co.uk
HAMODIA
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