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News Release

London

Jones Lang LaSalle Auction result


London, 14th July 2009 –-Jones Lang LaSalle’s third commercial property auction held on 9th May achieved a very encouraging 71% sale rate. The auction raised £36 million with the lowest yield of the day being 4.39%. The average price achieved across all properties was £1.4 million, with 60% selling above this mark.

Commenting on the auction’s success, Richard Auterac, Director and Auctioneer at Jones Lang LaSalle, said: “A surprising amount of cash is available from a wide range of buyers and there is no scarcity of money at the prime end of the market.  Non-prime yields are still moving out.  There may be a sense of this slowing although it is still too soon to call the bottom.  Tenant failure, lack of demand and falling rents are still real negatives at the secondary end but this is where some of the bigger real estate investors are prepared to trade off risk for return.”

Held at the Cumberland Hotel in London’s Marble Arch, attendance at the auction was once again extremely high with a wide spread of private investors present. Notable sales included:

• A freehold shop in Market Place, Kingston-upon-Thames sold for PruPim for £1.1 million at a yield of 7.74%.

• A freehold, strategically located office and warehouse in Maidenhead let on a long lease sold for £3.3 million at a yield of 5.83%.

• A modern office building in Milton Keynes let on a lease expiring in five years for a major institution sold well for 13.85% and exceeded the client's expectations.

• An industrial property unit in Wellingborough sublet for three years to TNT sold for 11.40%.

Peter Cunliffe, Director and Auctioneer at Jones Lang LaSalle, concluded: “The first eight lots all sold for yields below 7%, proving the weight of money there is available from private investors for good quality income.  There remain good real estate investments at high yields for investors willing to take a slightly higher risk.”