Brockton Capital won two City fringe lots at separate auctions on 5 December that will almost double the frontage of its 70,000 sq ft development on Shoreditch High Street, E1, to around 30 metres.
It bid first at the Allsop auction at the Berkeley, SW1, where it bought lot six, the former NatWest bank at 180-182 Shoreditch High Street, E1, for £4.1m.
The 8,000 sq ft Grade II listed property had been guided at £2.9m. It was sold on behalf of the bank.
The team members then headed to the Strettons sale at the Grand Connaught Rooms, WC2, to bid on lot 50, the freehold reversionary ground rent on 182 Shoreditch High Street. Brockton won it for £690,000, against a guide of £575,000-£600,000. The ground rent, subject to a lease with 27 years unexpired, was sold on behalf of a charity.
Brockton Capital co-managing partner David Marks said: “This is a beautiful, dramatic piece of the high street.”
The Strettons lot, backing on to Anning Street, would give greater access to Brockton’s development, he said, while the Allsop lot provided an opportunity it did not want to miss to put someone “really interesting” into the ground floor retail space.
“We didn’t want someone else buying the space and then putting the wrong retailer in,” he said.
Brockton may develop the upper floors as residential and is likely to own and operate the entire site through its FORA co-working business.
Brockton Capital bought its 0.8-acre site at 183-187 Shoreditch High Street in 2015 and secured planning consent this summer for a 70,000 sq ft mixed-use scheme designed by Allford Hall Monaghan Morris, with 50,000 sq ft of offices and 20,000 sq ft of retail and a street market.
The site is on the doorstep of Shoreditch High Street Overground station and opposite Derwent London’s Tea Building. Development is due to start next year, with completion scheduled for 2020.
Allsop brings in £83m at commercial sale
Allsop raised £83m at its commercial auction this week, recording a 75% success rate. It sold 10 lots prior, 94 lots in the room and seven post. A further £5m of stock was due to exchange as EG went to press. Around a third (32) of the lots sold went for prices in excess of £1m.
One strong performer was Conquest House, a three-storey office block in Waltham Abbey, Essex, with permission in place for conversion to 21 flats. Guided at £2.5m, it sold for £2.87m – a yield of 4.7%. “Residential is showing a bit of weakness, but PDR is alive and kicking,” said Allsop partner George Walker. He added that the location away from central London, just off the M25, was important in attracting bids.
There was fierce competition for a 36,000 sq ft industrial estate in Reading guided at £2m-2.25m. It sold for £2.42m, a 7.9% yield.