Jon Clyne, Director at Charles Darrow commented: “Despite the obvious challenges in the marketplace, both properties received an incredible amount of interest, which resulted in multiple bids and pre-auction exchanges on both. Online auctions are currently booming throughout the country with 2020 being our most success year on record for auction sales. I think in an uncertain market, auction provide absolute certainty of sale – which is attractive for both the seller and the purchaser.”.
Papa John’s, 155 Cowick Street, Exeter
We received unprecedented interest in 155 Cowick Street, a Papa John’s investment, given the continued strength of the covenant and takeaway sector specifically. The property boasts generous occupied ground floor areas and a large, vacant flat with a combined current yield of 12.3% off a rental of £30,400 per annum. Papa John’s are in situ on a 15-year FRI lease with the next review in March 2026.
The property attracted strong interest from investors in London as well as those in the South West, which culminated in a very strong pre auction bid of over 15% above reserve price.
The Former Midland Hotel, Garfield Road, Paignton Guided at £185,000 .
Client came to Charles Darrow as he had just been let down by another auction house and despite the property being completely stripped out and works very much ongoing, the property had received sign off by building control. Planning had previously been granted for 8 x holiday letting studios and a 2-bedroom managers flat, so we were extremely confident on being able to generate interest. After only 3 weeks of marketing and following strong levels of interest, we received a robust pre auction bid of close to 20% over the guide price, which secured the property before the auction date.
Sometimes sellers are happy to take bids pre auction as nearly all our clients just want the security of sale that the auction contract gives them. This was the case with both of these properties as both clients felt that the prices bid pre auction were above their expectations and may not be bettered on the auction day itself.