BidX1, the digital property investment platform, has recorded a 90% success rate at its latest UK online auction. Just over £11m was raised from the sale of 44 residential and commercial properties, which attracted 168 bidders.
Oliver Childs, Head of Commercial Auctions at BidX1, commented: “There is certainly momentum in the market at the moment, providing a clear window of opportunity for sellers. A 90% success rate speaks for itself, but we also recorded unutilised liquidity – the sum of the highest bid for all unsuccessful bidders – of just under £15m across the 44 lots. That’s a significant amount of capital ‘left on the table’, and a solid indicator of investor demand.
“The sale featured an increased proportion of receivership stock, a trend we expect to continue into Q3, and to increase again in Q4 as more corporate sellers seek to meet budget targets by year-end.
“Online auctions are becoming more mainstream. Mindsets are changing rapidly, especially for sellers. As the mature player in this space, we are seeing a huge increase in demand for a tech-focused approach, both from existing and new corporate clients.”
Notable sales included a vacant freehold retail unit and ground rent investment in Colindale, which sold for £1,695,000, from a guide of £700,000. Childs noted that the firm’s online auction platform was the optimum route to market in this case.
He said: “This was a very complex sale, as potential purchasers had to consider a number of variables including ground rent income, remedial works required on the external cladding of the building, and a vacant retail area, in order to form an opinion of their bid level. Auctions are the ideal method of sale in such cases, ensuring that best value is achieved. Furthermore, the online platform was able to provide the selling parties with complete transparency, as well as granular, real-time data in the lead up to the auction.
“Ten bidders registered on the lot in advance of the auction, seven of which took part on the day, placing more than 200 bids.”
In Cambridgeshire, a freehold retail investment in Huntingdon, sold on behalf of the LPA receiver, attracted 109 bids before selling for £310,000 – £110,000 above the guide price.
The July sale was also the first outing for UK Power Networks, following BidX1’s appointment as their preferred online auction provider last month. BidX1 has been working with the energy company to develop a disposal strategy for the sale of surplus sites throughout the south-east.
The first tranche of five lots enjoyed a 100% success rate, raising a combined £126,200 – a substantial jump from a combined reserve of £19,800. A freehold site in Gravesend, extending to 351.76 sq m (3,786 sq ft), proved the most popular: 274 bids from 10 separate bidders resulted in the lot closing at £65,000.
Other noteworthy sales, on the residential side, include a beautifully appointed, leasehold apartment in Fitzrovia, offered in association with Foxtons, which sold for £1,525,000. A first-floor leasehold flat in Hampstead, also offered with Foxtons, sold for £428,000. Located within a period conversion and boasting high ceilings and bay windows, the property offers naturally bright living space, stylish interior design and a quiet location just moments from Hampstead Heath.
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