Reading: High-street bank goes under hammer at online auction

A Reading high-street bank valued at around £4.5 million will be brought to the commercial property market this month as part of a multi-million-pound UK-wide auction.

The Halifax branch, located on Broad Street, will remain open for business as usual following the sale, which is being managed by online property auction specialists John Pye Property.

The branch is one of seven Halifax branches being sold on behalf of LPA Receivers valued at £20 million in total. Other locations include Brighton, Chelmsford, Colchester, Darlington, Mansfield and Liverpool. A Barclays branch in Grimsby is also being sold.

Richard Reed, head of property at John Pye Property, said: “This is a unique investment opportunity for this area and we expect to see massive interest from national and overseas investors.

“Along with the other branches, this is a significant portfolio of properties being sold. All are prime for investors looking to buy good quality stock when there is not a great deal of top quality investment properties coming to market. The properties are in fantastic high street locations in UK towns and cities. The first seven properties have approximately five years remaining on the leases, the eighth property has ten years remaining, and with gross initial yields ranging from 5.5% to 9.7%, they offer great returns from blue chip tenants.

“It is recognised that banks are secure tenants and there are long leases remaining on the buildings from long standing tenants.”

The November sale is one of John Pye’s most significant to date with the guide prices of the eight bank buildings ranging from £1 million to £4.5 million. 

With clients ranging from LPA receivers, insolvency practitioners, banks, property companies and private investors, John Pye’s pioneering online property auctions have offered properties valuing more than £175 million through its auctions since 2014.

The company hosts online property auctions using the latest technology and is the market leader in the way it sells online.

Simon Hunt of JLL, said: “As LPA Receiver I need to ensure that I sell property assets for the best sale price and with John Pye’s extensive database of active buyers and their global reach, then I am confident that they will generate a large amount of interest in these blue chip investment opportunities from a wide range of UK and overseas buyers and I am very much looking forward to some fantastic outcomes for our lender client.”

Reed added: “We provide sellers with the best value route to market by offering 0% seller fees, £0 marketing costs and £0 entry fees, meaning any sale of property through our auctions will be without any agency fees or associated marketing costs.”