Commercial property auction 'a success'

Savills has announced that its latest commercial property auction achieved an overall success rate of 74 per cent.

The real estate advisory firm's event, which was its second of this year, saw 11 out of 15 lots sold and raised over £6.78 million.

Among the most notable lots were a Georgian Grade II listed building in Lymington, Hampshire, which was sold for £1 million, and a six-floor freehold investment in Fitzrovia, London, purchased for £1.43 million.

Simon Parker, head of commercial auctions at Savills, said: "As predicted, those lots that offered strong income potential in prime locations generated some very competitive bidding in the room from cash rich or low geared investors.

"There was also further evidence of an increased appetite for properties with good covenants on long leases, which generated investment yields of sub-six per cent."

Recent figures from Savills revealed that the decline in commercial development activity is slowing.