Commercial Auction Summer Review 2016
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Vendor analysis

Vendor analysis

Volume of disposals by vendor type and sales 2014 to 2016

The significant swing in H1, 2016 has been the increase in Receivership sales, with 23% of sums raised emanating from appointed Receivers against 5% in 2015. These sales are to a
large extent as a result of the unwinding of some of the larger debt portfolios. Private equity groups in particular purchased, in the main, non-performing loans on a wholesale basis, and now the properties behind these loans are being sold whilst market
conditions remain so positive.

Private property companies raised similar sums to the previous period (£175 million against 2015 – £178 million) but while this reflected a larger volume of assets (324 lots vs 2014 – 295) it represented a smaller percentage of the total at 48% vs 2015 – 64%.

A number of institutional vendors came back to the market as sellers, accounting for an increase in value to £43 million, up from £29 million in 2014. It will be interesting to see, over the rest of the year if some of the retail funds will use the auction as a method of disposal for some of their smaller assets in the quest to release some cash to meet redemptions.

Surprisingly perhaps government bodies are not represented in the half year as sellers, although interestingly we have seen local authorities in the room as buyers.