Our annual Investment Seminar was as busy as ever. With over 100 private investors assembling in Central London to hear the Prideview team and Allsop, the leading commercial property auctioneer, discuss the current market.
With the current uncertainty in British politics and High Street Retail, the event was designed to be very interactive - over 30 questions were posed by attendees whilst we also polled them on 6 questions of our own.
The event commenced with an introduction by Nilesh Patel, Principal at Prideview Group, about how a commercial property portfolio can secure your family’s future. Having established that 60% of attendees had most of their savings invested in residential property, or sitting in the bank, he explained the lure of commercial, with its better tax treatment than residential and bank-beating yields for long income.
He then introduced George Walker, Senior Partner, and Will Clough, Auctioneer at Allsop, who gave the audience a details update on the market, with plenty of examples from their recent October ’19 auction which raised £71m.
You can watch the beginning of George’s presentation here.
He observed that demand continues to be very strong for the best quality assets, and that most auction buyers are currently buying in cash.
The latest October auction saw a very wide spread of yields from 3% - 22%, which he attributed to the increasing number of investment parameters that buyers are considering when bidding. Interestingly, he went on to poll the audience, 45% of whom said their most important parameter was risk / yield (rather than geography, budget or value-add potential).
During the event we engaged the audience with some interactive questions, yielding some interesting results:
Finally, Pritesh Patel, Associate Director in our Investment Team, walked the audience through some recent long income and value-add deals as well as some current opportunities.
He talked through a number of long income investment opportunities with leases ranging from 7 – 15 years and asked the audience to choose which they preferred. Incredibly the most popular (35%) was the deal that offered the lowest yield (5.2%) – the highest yield on offer was 7.0%!
This deal is a Co-op Food in Canary Wharf, London’s financial district, with 11 years term certain, for sale at £1.9m. The rationale was that more important than yield, was the fact that it’s long lease, convenience store usage and fantastic location, meant it is very low risk.
If you would like to be kept in the loop regarding similar events and investment opportunities, please contact us here.
You can also view some pictures from the event on our Facebook album here.