After a 2 year break, the Prideview team returned to the room where we hosted our exclusive, investors only, commercial property seminar on 17th November in Central London.
Over 100 investors attended the interactive event which was also streamed live, and covered a number of key topics including online auctions, long-income investments, adding value to commercial property and finance.
To access the private link to the recording, please register on our website here: www.prideviewgroup.com/seminar.
The event commenced with an online auction update provided by George Walker and Will Clough, Partner and Auctioneer at Allsop. They discussed some of the lessons learned from the online auction process and confirmed that whilst a return to the auction room would happen in 2022, they would not rush and their AML bidder registration conditions were likely to remain. As investors have become more accustomed to the process, they noted a 20% increase in lots sold compared to 2020 with 181 lots sold above £1m – a 50% increase on 2020.
They then focussed on the Retail market which comprises ca. 75% of their sales and remains the key market for private investors. Their retail analysis was broken down into sub segments including High Street Retail, Convenience Stores, ‘High Yield’ Retail and Mixed Use properties, and culminated with an interesting case study for the many medical investors that attended regarding the 102 properties let to Boots which they have sold since May ’19 at an average yield of 6.4%.
Pritesh Patel and Mark Hoffman, Directors at Prideview, then took over to discuss Long-Income and Value-Add Investments respectively. Pritesh started by analysing our transaction results since the 1st lockdown in March ’20 - 126 deals done at an average value of £1.07m – with this key message being the quality stock remains very hard to come by. He gave details of a mix of Off and On Market deals, and both Acquisitions and Disposals done this year, including a Co-op Food investment with 12 years term certain in Chelmsford which we sold by private treaty in the summer for £2.65m (4.8% net yield).
Mark then discussed ways in which value can be added to commercial property, covering the Industrial and Office sectors as well as Retail and went through the case study of a CEX with Offices in Leamington Spa which he bought for a client in 2020 for £680,000 (7.5%), which now has planning for the office space to be converted to several flats, significantly adding value to an investment that is also delivering yield. His main message remained consistent – to always disregard hope value when buying.
If you would like to learn more about commercial property, or have a property to buy or sell please don’t hesitate to contact Nilesh Patel on [email protected] and remember to access the private link to the recording, please register on our website here: www.prideviewgroup.com/seminar.\
