Our latest Auction blog has been published on Property Forum, an online space dedicated to investment property news. Click here to read the full article.
Below is a summary of the article content and deals analysed this time around:
- After a strong year for UK commercial property in 2017, it looks like things may start to change in 2018.
- Whilst quality investments continued to sell like hotcakes, the less exciting lots left much to be desired.
- Solid long-dated income or genuine value-add opportunities remain the order of the day i.e. investments that permit the investor to ride through the uncertainty ahead.
- We are marketing several lots in auction in March including a vacant pub with development potential in Whitton, West London (£1.6M+) and Integrated Dental in Norfolk (£150k+, 9.3%).
We transacted on the below blue-chip investments in the February auctions – full analysis is provided on the Property Forum website here.
Lot 67 – McDonald’s, Leicester
Description: Freehold city centre restaurant investment
Tenancy: Let to McDonald’s Restaurants Ltd until 2036 (no breaks) for £109,000 FR&I
Location: Good location in pedestrianised town centre
Guide Price: £2m+ (5.5%)
Result: Sold Prior (ca. 4%)
Lot 35 – Tesco Express & 2 Restaurants, Ickenham, Greater London
Description: Freehold convenience store, restaurant & residential ground rent investment
Tenancy: Convenience store let to Tesco until 2023, Restaurants for a further 10 years, total rent £89,365 p.a. FR&I
Location: On a busy commercial parade in an affluent north-west London suburb
Reserve Below: £1,250,000+ (7.1%)
Result: £1,405,000 (6.4%)
Lot 101 – Papa John’s, Newport
Description: Freehold takeaway & residential ground rent investment
Tenancy: Takeaway let to Papa John’s for 15 years from 10/02/2017 (TBO 10th year) for £12,000 p.a. and Flats sold off on long leases for £100 p.a. FR&I
Location: Arterial road in a residential suburb 1 mile from the city centre
Guide Price: £155k + (7.8%)
Result: £168k (7.2%)
If you are looking for a commercial property investment by auction or privately we can assist. We have a number of off-market investments available now, and will be actively buying and selling in the upcoming March auctions. Please contact Nilesh to discuss further or Register with us here.
