Intense interest from across Wales and the rest of the UK in a Gwent industrial estate saw the price achieve almost a quarter of a million pounds more than its guide.
Wales property expert Sean Roper says the price achieved could indicate the realisation of pent up demand for industrial space in the south Wales valleys with investors looking to exploit new opportunities presented from investment in the important A465 Heads of the Valleys truck road.
Units 1-18 Central Depot at the Barley Field Industrial Estate, Brynmawr, Ebbw Vale, was listed by Paul Fosh Auctions as a commercial Investment opportunity with a guide price of £450,000 plus.
Interest was such that leading up to and in the auction hall on the night that the figure quickly passed the guide and rose to its sale price of £650,000 with the property being sold to a local investor.
Sean Roper, who handled the sale on behalf of Newport-based Paul Fosh Auctions, said he was not surprised at the figure achieved for the eagerly contested lot.
“There was significant interest from right across the UK for investors for this lot. The property could have been sold prior to the auction due to the level of interest but the local, private owner wanted to see what the property would achieve at auction.
“In the end, after others had dropped away, there was three or four parties battling it out in the auction room and the lot was eventually sold at £650,000, an impressive £200,000 more than the guide price.
“Barley Field Industrial Estate is a well managed site which has been looked after over the years. The tenants, many of them local businesses and trades people, are keen to remain at the industrial estate which gave investors looking to bid added confidence in their purchase of the site.
“The Barley Field Industrial Estate is very close to the A465 Heads of the Valley trunk which after its improvement is becoming an increasingly important gateway for businesses into south Wales. There is currently an extensive expansion and improvement scheme on the A465 road which will eventually open up the South Wales valleys for even more business.
“The income per month for the 18 units, which are fully let, with many of the tenants in situ for at least three years, has a combined rental income of £78,775.80 per annum.
“We expect the current rents paid are below potential market rents and any new owner would have the scope to increase these significantly.”
“We were very pleased to have achieved such a welcome price for the lot. There are clearly a number of thwarted, disappointed investors out there so we’re now looking to list additional, similar, commercial lots to satisfy what is clearly a demand for this type of industrial property in south Wales.
The recent Paul Fosh Auctions sale realised a total of £3,537,250 through the sale of 37 lots from a total of 57 lots. The next Paul Fosh Auctions sale is on Thursday, December 6, at The Park Inn Hotel, at Llanedyrn, Cardiff, starting at 5pm