Auction Results & Yields

Allsop residential auctions finished the financial year on a positive note last week posting a £35m total and an 85% success rate from its 31st March auction sale. This brings the residential sales total for 2010/11 to £333m.

The overall success rate for this period was 87%, substantially out-performing the UK auction industry average of 67%.

The sale was held at the Park Lane Hotel on Piccadilly, London, a new venue for the firm's Residential auction department, although a regular venue for its Commercial team.

The catalogue comprised a broad mix of investment and vacant stock. Notably a larger than usual selection of ground rents went under the hammer, many with short dated reversions.

"These proved particularly popular" said auctioneer Gary Murphy. "These investments, some subject to leases having as little as three years unexpired, are often difficult to price accurately. Our reserves were modest which allowed the competition in the room to determine value."

Regulated investments continue to sell well. In total, 22 were sold from a total of 29 located throughout the country. The average yield from this investment class was 4.6%.

The proceedings were interrupted in the afternoon by the hotel's fire alarm, causing auctioneer, Chris Berriman to call for the several hundred bidders to vacate the hall and meet on Piccadilly.
"It's the first time that this has happened in my career" said Berriman. "Fortunately, we were able to resume the auction within half an hour and pick up where we left off without losing momentum."


Yield Analysis

Regulated lots - 4.6%
Assured Shorthold - 9.42%
Ground Rents (80 yrs +) - 10.4%

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