What: Allsop Space sale of 150 Lots, mix of residential, commercial and development, Dublin and provincial, catalogue here. Note that of the 156 Lots in the original catalogue, six have been withdrawn.
When: Friday 1st March 2013, from 9.30am (auctioneer announcements from 9.15am)
Where: Shelbourne Hotel, St Stephen’s Green, Dublin 2
How much: The maximum reserves for the 150 Lots are €14.9m.
This will be the 10th Irish property auction organized by Allsop Space – Allsop being the UK property auctioneer which specializes in distressed property sales and Space being the Dublin-based estate agency. The previous nine auctions have raised €123m and have transformed the Irish auction experience through transparency and efficiency. Two years ago, a “mega auction” was the description used in Irish media for an auction with 20 Lots; what superlative would apply this coming Friday when Allsop Space will be offering 150 Lots? Allsop Space also championed the “maximum reserve” concept so punters know that over that advertised price, the Lot will definitely sell to the highest bidder.
There is the usual mix of residential, commercial and development, though the commercial weighting is more pronounced than previously. There is also a heavy weighting of residential buy to let properties. If Fiona Muldoon’s words of advice to the banks are taken on board, then we might expect more of these to come onto the market in future auctions.
I think Allsop Space is proud to be selling musician Roger Whittaker’s detached home in Eyrecourt in Galway – pictured above. Not only does it add a little razzamatazz to proceedings but it underlines the fact that some properties on sale are not distressed and have not been the subject of bank foreclosures. The detached property in Galway comes with its own studio and gym and has a maximum reserve of €275,000. There’s an estate in Leitrim with a maximum reserve of €250,000, a shop on Capel Street with a MR of €500,000 and 400 sq ft of office space in Harold’s Cross with an MR of €21,000. There’s a 4,500 sq ft warehouse close by to TV3 studios in Ballymount with an MR of €90,000 which might help us assess the health of the industrial sector.
Allsop Space produced in January 2013, a review of its auctions to date which show that although there is strong overseas interest, 87% of buyers are Irish, that cash and mortgage sales are now about evenly balanced compared with 85% cash at the first Allsop Space auction in April 2011, 93% of Lots sell and, although it doesn’t appear in the review, on here it is calculated that the average “premium” realized above the maximum reserve is about 30%.
Carol Tallon at Buyers Broker Limited should be live Tweeting from the auction on Friday and you can follow her here, and if the technological gremlins don’t play up on Friday, then Allsop Space should be live streaming proceedings as well as hosting live bidding – details here.
UPDATE: 1st March 2013. The auction concluded at around 3.30pm today. Gary Murphy presided for most of the proceedings which went off without incident. The results are lackluster compared with previous auctions, with an 81% success rate as the hammer fell (three more properties were sold after the auction so I guess Allsop Space will claim a 83% success rate). €13.1m was spent on 112 properties which had maximum reserves of €9.9m meaning the average price achieved was 32.4% above max reserve. 18 Lots were withdrawn, up from six last week and nine earlier this week, and the suspicion will be that the auctioneers withdrew some Lots which would not attract sufficient interest. Still €13.1m plus the three post-auction sales is not bad. There were a lot of regional sales this time around. Yields ranged from 6% upwards. We should have some additional analysis tomorrow with reaction from Allsop Space. Here is the summary, you can full Lot details here.
UPDATE: 5th March, 2013. Overall, Allsop Space claim a success rate of 86% after after-sales are taken into account – that’s 119 Lots worth €13.75m, compared with just 83% or 112 Lots sold under the hammer or 115 Lots sold during the auction. There is limited demand for commercial property in poor locations or with poor leases, with the same going for secondary residential property in areas of over-supply. Having said that, there is strong demand for well-located property with performing tenants on new leases. Residential investment property in Dublin city centre is enjoying buoyant demand. A house in Cabra sold to a Chinese national whilst a pub in Buttevant sold to a bidder from Lithuania. The largest lot of the day 20 Herbert Street in prime central Dublin sold for €640,000. The property comprised of a vacant freehold mid terrace Georgian building extending to approximately 346 sq m (3,733 sq ft). An online UK bidder succeeded in securing the former home of singer Roger Whittaker for €285,000. The Old Convent in Eyrecourt, Co Galway includes a recording studio, gym and outhouses. 37% of the auction buyers purchased with pre arranged finance indicating that the Irish banks are lending, proving their confidence in the auction property market. Recent auctions have been 50:50 cash and mortgage so this result indicates cash is back as king. 38% bought for owner occupation, 57% for investment and a 5% for development. Proving that the auction process is equally popular to sellers as buyers, 74% if the buyers at the auction claimed they would sell their property at auction. In the commercial market Cork’s Munster Rugby shop sold for €295,000. Several lots in the licence and leisure sector were successfully sold including The Farren Well Bar, Co Cork a freehold mixed use building including a public house and first floor one bedroom apartment. The lot sold for €192,500 with maximum reserve of €150,000. A 27 bedroom hotel in Co Clare in the South West of Ireland sold for €305,000 with a maximum reserve of €215,000. Speaking after the sale Robert Hoban, Director of Auctions commented ‘The level of bidding on properties within the main urban centres was very encouraging. This is in line with recent reports on the apparent strengthening of the city markets. Tenanted properties in Cork, Dublin and Galway attracted multiple overseas bidders, driving prices up and yields down.”