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Commercial Auction Annual Review 2016
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Vendor analysis

As highlighted in our Summer Review the buoyant demand in the market drew out a good deal of stock from receivers. Most of these were from the ongoing break-up of loan book portfolios, acquired over the previous 4 years, and accounted for £120m, some 20% of total sales (4-year average £60m/14%). The average lot size from this source saw a significant increase to £900,000, up 83% from the 4-year average.

The Private Property Company, (ie without external shareholders) continues to dominate the market, with £322m of sales, and almost 60% of the volume.

Corporate vendors remain a presence, both in the “sale and leaseback” arena and in portfolio rationalisation.

Demand for competitively priced assets from local investors is firm, and vendors have been able to tap into this pool of buyers effectively, via the auction room.

Institutional investors increased their use of the auction room as a disposal method, accounting for £66m of sales, an increase of 40% over the 4-year average. The average lot size from this sector of vendors also increased to £1m, from £650,000 (4-year average).

 

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