A number of lots sold for far in excess of their guide price – in particular lot three which was sold for a high street bank for nearly 100% more than its guide price at £285,000. All of the LPA receivership lots were sold – reinforcing that the auction room really is the best route for such stock.
For one of our longest standing clients, Essex County Council, we sold 100% of their featured lots, some of which were sold for three times their guide price.
Location is key
One of the most popular lots in the auction was lot 40, a freehold workshop investment, owned by the London Borough of Camden, in West Hampstead, London. Explaining, Oliver Childs, Head of Auctions at LSH said: “We always knew this lot was going to be popular, even prior to the auction over 100 copies of the buyers pack for this lot were downloaded, which is significantly above the average. After much activity in the auction room the lot sold for £251,000, well above its guide price of £110,000.”
Commenting on why this lot was so popular, Oliver said: “It really was down to location. It is in a popular residential area in London, offering an investor the chance to place their money in what is regarded as a ‘safe haven’ location.”
Buying at auction offers chance for return on investment
Concluding, Oliver said: “Buying an asset at auction is particularly attractive to savvy investors. It offers them a real opportunity to get a return on their money – something few saving accounts, gilts or bonds can offer them at the moment. I expect as we continue through 2013 we will see an increased number of returning and new investors in the auction room.”