Strettons December Auction Brings Welcome Festive Cheer

Read the latest press release from Strettons regarding their last auction held in December 2012.

The room at Strettons last auction of the year on 11^th December was the busiest seen all year evidenced by 77% sales and a total realisation of £11m, rising.

Highest price achieved on the day was for a mixed freehold retail/residential parade in West Drayton, Middlesex which sold for £522,000 against a guide of £350,000-£400,000, showing an initial net yield of 4.6% against the back drop of an average net yield of 6.8% for commercial investments and 7.3% for residential investments.

In contrast average net yields for freehold ground rent investments with more than 80 years unexpired were 4.2%. The largest ground rent lot in Slough comprising 20 flats with 55 years unexpired, producing £500pa, sold for £310,100 against a guide of £220,000+.

Notable commercial sales included Lot 22, a small commercial unit in Forest Gate, E7 which has been in the same ownership for over 30 years, currently producing £13,000pa which sold for £233,500 against a guide of £150,000+ to show a net yield of 5.3%.

In East Ham, E12, a commercial unit and ground rent producing £47,500pa sold for £437,000 against a guide of £300,000-£350,000 to show a net yield of 10.3%.  Lot 24 in Acton, W3, a dry cleaners producing £14,000pa sold for £200,000, a net yield of 6.6%.

Residential investments included a house in Greenford let at £13,800pa which sold for £220,000 or a net yield of 5.9% and in Hanwell, W7 a flat producing £19.104pa which sold for £220,000, a net 9.6% yield. 

There was fierce bidding for Lot 14, a part vacant block of 8 flats in Harwich producing £25,580pa which sold for £465,000 against a guide of £275,000-£300,000, so a little over £58,000 a flat, 5.2% on the present income and about 10% on potential income when fully let.

Less common nowadays, a house let on a regulated tenancy in Hornchurch producing £5,668pa, sold for £131,000, a net yield just under 6% and a freehold hotel in Anerley producing £24,000pa sold for £425,000, a little over 5.3% net yield.

So, a good way to end 2012 which we hope bodes well for 2013.

We would like to bid all our clients Compliments of the Season and prosperous New Year.

We have 7 sales in 2013, the first on Wednesday 6^th February, with the catalogue due out 16^thJanuary – lots invited!

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