OLIM Property finds buyer through real-time online auction
The freehold restaurant is let to Prezzo until 2045 at a rent of £55,000 pa.
The property was owned by ASDA Pension Fund Trustees, a discretionary fund management client of OLIM Property.
Singer Vielle uses the click-to-purchase platform, which allows exchange of contracts (digitally signed) to be conducted electronically.
The platform can also be used to invite online binding “best offers” or to conduct a real-time auction online – as in this case.
Unlike eBay-style auctions, it uses a live auctioneer who interacts with a bidding audience to emulate a sale in the room.
Jo Seth-Smith, investment manager at OLIM Property, said: “There’s not an awful lot of long income available at the moment.
“Retail and leisure is a sector that private investors are very comfortable with, so when you’re looking at a long-income property like this, you’re aware that your likely buyer is a private investor – and they are likely to buy at auction,” she said.
“We were happy with the 5% yield. You don’t see a lot going for sub-5% outside London.”
For sellers, conducting a bespoke sale at a time they choose, instead of waiting for the next in-room auction, is an attraction of the online model, said Seth-Smith.
The bidder registration process also allows sellers to assess the level of interest and adjust pricing accordingly, she added.
Shepherd & Wedderburn acted for OLIM Property.