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Commercial Auction Annual Review 2015
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Vendor analysis

Volume of disposals by vendor type & sales

The Property Company vendor – i.e. a multiple asset owner, without external shareholders – consolidated a return to the market. There is a clear opportunity to sell into a market where there continues to be lack of stock. They accounted for 65% of sales (£290 million of asset disposals) an increase over the 2014 figure of 59%.

In contrast, the volume of Receivership sales continues to ease, accounting for only 7% of sales by volume (4% by value), from a 2012 peak of 30%.

The smaller Private Investor also appeared to be enjoying a higher level of activity, with almost 20% of the sales volume. Improving market conditions are allowing the smaller Private Investor greater trading opportunities. There remains however ongoing pressure from lenders to sell.

Corporate Vendors in the “sale and leaseback” market are still active, with portfolios from IDH and two Funeral operators, which created good interest. As economic conditions improve, some corporate vendors are perhaps under less pressure to extract value from their operational estates. There continues to be a steady supply from some corporates, selling as sale and leasebacks, operational properties acquired in the course of business expansion.

The motivation for sale varies enormously across vendor types. However common to all is appeal of the opportunity to sell into a market, where there is clearly a shortage of stock and strong buyer demand.

Vendor Analysis 2013 to 2015
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