Cheffins’ second property auction of 2018 saw 16 lots offered on Wednesday 20th June at the firm’s salerooms in Cambridge, generating a total of £3,395,500 with an 80 per cent sale rate. The sale included a series of building plots, land, residential and mixed-use lots alongside commercial investments.
The headline lot of the day was a mixed-use investment opportunity on Mill Road, central Cambridge generating an annual income of over £65,000. After competitive bidding from a series of parties, the property eventually sold for £885,000, which was £185,000 over its upper guide price of £700,000. On the corner of Mill Road and Devonshire Road, the property has dual frontage onto these two busy streets with two retail units on the ground floor, currently with a rent of £18,000 and £10,615 per annum apiece. The first floor comprises a self-contained one bedroom flat and five bedsits which achieve a total of £37,200 per annum. The property was sold to a private investor.
For those looking for a straight commercial investment, a substantial building in the heart of Huntingdon let to a single established tenant at a rent of £70,000 per year was also sold. The property, which had a guide price of £800,000, offers long-term investment potential with the prospect of further development.
Building plots and land opportunities also sold well with 2.6 acres of grassland at Over, near Cambridge, selling for £48,000, well over its guide price of £40,000. Similarly, a small parcel of woodland in Ashdon near Saffron Walden was sold pre-auction, for a figure far in excess of its guide price. Residential renovation projects saw interest mainly from private buyers, with a semi-detached house in Isleham, near Ely, selling for £66,000, well over its upper guide price of £50,000.
Ian Kitson, Director, Cheffins comments:“June’s sale proved that despite the obvious woes befalling many retailers at the moment, demand for multi-let High Street investment properties is continuing as purchasers look to spread risk and secure income. In the main, demand is for properties which are well-located and offer opportunities to grow returns through active asset management including re-gearing leases or developing unused or underused space, such as outbuildings or upper floors. We have seen an increase in the numbers of investors looking to acquire commercial property at auction in order to diversify their income streams and the property on Mill Road was the perfect example of this. Offering both retail and residential income, we saw interest from both local investors and those from further afield. Buy-to-let residential properties also sold well, as career landlords continue to increase their portfolio, especially in high value areas in and around Cambridge. Renovation projects still draw in private buyers and developers alike, as we saw with the cottage for sale in Isleham and also an Ely town centre house, both of which sold well over their reserves. The various sale prices are a clear indication of a continued confidence in the local property market.”
The next auction will take place on Wednesday 19th September from 2pm at Cheffins, Clifton House, 1&2 Clifton Road, Cambridge, CB1 7EA.
Cheffins’ property auction has generated over £7.8m in sales throughout 2018.
For further information, contact Cheffins Property Auction team on 01223 213343.