Steve Jones Comments on – Allsop Auction 3rd December 2009

Allsop’s latest auction only had a success rate of 78%, compared with 92% in October. With prime yields having sharpened over the last few months, I wonder whether vendors were temped to push reserve prices just a little ahead of where the market actually is at present.

The auction included 33 bank investments and Allsop say the average yield was 5.41%, down from 5.16% in October, but a number of lots let to HSBC did have relatively early lease breaks.

 It appears the more secondary lots were the ones failing to sell, which supports the general view that the market has a two tier structure.