House-hunters to cash in as £1m of property auctioned off

Published on Monday 25 May 2009 10:11

AROUND £1 million worth of Lothians property is to go under the hammer at one of the Capital's biggest housing auctions in years.

The Co-operative Group is looking for a quick sale on a raft of 15 properties across the region it now deems surplus to requirements.

Auctioneers expect a mixture of property investors and individual buyers looking to bag a bargain at the auction this Wednesday.

Most of the homes have come from the Manchester-based Co-operative Group's merger last year with the Lothian, Borders & Angus Co-operative Society.

Following its merger, it conducted a review of property in Scotland and decided to sell any non-trading assets and instead invest the money in the business.

Some of the residential properties are occupied by former employees who are under "life rent" deals and will continue to rent the properties after its sale. Others would have been used by senior figures within the business as living accommodation, or are flats above shops that used to be owned by the group.

Among the lots expected to see the most demand at the auction, which takes place at the Marriott Hotel on Glasgow Road, is an empty stone-built, slate-roofed bungalow in Tranent expected to go for around 150,000.

A three-storey 19th-century detached house split into two flats is also expected to be popular. However, it is expected to raise only around 100,000 as there are two tenants in the flats on "life rent" deals.

Sean Vigers, auctioneer and director at Edinburgh-based SVA Property Auctions, which runs auctions across the country, said it was rare to have so many lots from the Lothians. He said: "The most recent one we've had of this size in Edinburgh was about nine years ago, when we offered a range of properties for East of Scotland Water.

"Current market conditions will affect what we expect but there is a lot of interest in this sale because some of these have never been on the market – they've been owned by the Co-op since year dot.

"Most are well looked-after and in good condition. It's not like a repossession sale. I expect that to mean some keen bidding."

The sale will provide the Co-Operative Group with additional funds. A spokesman for the group said: "These are properties surplus to requirements."

Craig Watson, an associate director at property firm Jones Lang LaSalle, said: "The great thing about auctions for us and our clients is that they are transparent and are a quick way of concluding a transaction.

"Clients can get payment in immediately and that can be attractive. It is also an opportunity to reach out to people who have cash and are looking for an unusual opportunity that could turn out to be a bit of a bargain."