Yesterday’s auction had a success rate of approx 80% from a catalogue with 161 lots, which is larger than we have seen for a long time. Most of the retail and motor trade properties sold, whilst the majority of unsold lots were offices and pubs.
Three Barclay’s banks with smallish lot sizes sold for 4.0% and 4.75% (two lots). The average at 4.5% is down almost 0.5% from May, but these were small lots. One Lloyds bank with an expiry in 2016 failed to sell, perhaps due to recent announcements about closures and further redundancies within the Group but a £2Million lot with an expiry in 2020 went for 6.25%.
Somerfield (Co-op) PFS’s with convenience stores, with 2027 expires and 2% annual increases sold for 6.75% -7.5%. In May a number of similar lots sold for 1.0% less.
A Wetherspoon on ‘the circuit’ in Bolton and let until 2047 sold at 8.0% (£1.46 Million), which seems a high yield, bearing in mind the covenant.