Allsop Auction Tuesday 10th October 2010

Allsop’s October Auction produced a success rate of 72%, which compared to 52% for Acuitus and 56% foer Cushman and Wakefield a few days later. Allsop commented that, whilst there were a number of new investors in the room seeking to buy long dated income with cash deposits, the general level of confidence amongst other investors and their banks was less than it had been earlier in the year. Bearing in mind the timing of the auction relative to the announcement of the Coalition’s spending review, it is not surprising quality of income and location were of greate interest to investors.

19 Bank investments were sold, reflecting an average lot size of £912,368 and initial yield 5.47%compared with £786,400 and 5.54% in July.
6 Lloyds Banks achieved yields below 5%, but 5 failed to sell at yields of circa 6.5%.

Interestingly, 2 new Tesco Express investments in Bristol and Barlow Moor Road, Chorlton and  failed to sell at 6.8% and 6.5% whilst a similar investment in Grays Essex did not sell at 7% in the Acuitus auction.