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News Release

London

Jones Lang LaSalle Auction Result


London, 22nd October 2009 – With commercial property in the UK showing signs of recovery and investor confidence growing, Jones Lang LaSalle’s autumn auction (held on 21st October) achieved a very strong 81% sale rate raising £35 million. The average price achieved across all properties was £1.34 million, whilst the lowest yield of the day was 3.25% for the Star and Garter public house in Putney which reflects the recent resurgence in interest for leisure properties.
 
Commenting on the auction’s success, Richard Auterac, Director and Auctioneer at Jones Lang LaSalle, said: “This is a fantastic result. The auction room witnessed the strongest buyer interest we’ve seen in two years, and it is clear that the auction market is leading the way out of the recession with a growing number of buyers taking advantage of strong income returns from real estate investments. There is a wealth of cash rich experienced buyers re-entering the market but they are chasing a limited supply of prime stock, which is resulting in a push on prices for the best properties. All bank investments sold proving their popularity and reflected a rapid hardening on yields from their low point in 2008.”
 
Held at the Cumberland Hotel in London’s Marble Arch, attendance at the auction was once again extremely high with an exceptionally wide spread of private investors present. Notable sales included:
  • The Star and Garter pub in Putney which sold for £3.4 million against a £3 million guide price, and reflects a yield of 3.25%.
  • 31/33 Sycamore Road in Amersham, a well located retail unit, sold for £840,000 against a £600,000 guide price achieving a 4.17% yield.
  • The Post Office Unit in London’s Victoria sold for £2.12 million against a £1.75 million guide price, reflecting a 5.91% yield.
  • Mundesley Medical Centre in Norwich which sold for £820,000 against a £725,000 guide price, achieving a 5.38% yield.
Peter Cunliffe, Director and Auctioneer at Jones Lang LaSalle, concluded: “The depth of buyer demand is increasing every day and this has forced prices for well-let superior investments to start a rapid recovery process. As prime stock values continue to rise sharply, secondary properties will once again become attractive investments to the growing pool of wealthy and well-leveraged investors during the course of 2010, closing the gap on the existing two-tier market.”