Investment sale of Cambridge dental practice 20% above asking price

The Challenge

A local authority needed to dispose of a commercial investment property on Newmarket Road comprising an established dental practice held on a long lease. The property represented a stable income-generating asset with a sitting tenant paying £45,000 per annum on a 16-year lease with five-yearly rent reviews.

A swift, efficient disposal process that would achieve optimal market value was required, therefore positioning the asset correctly and reaching the right buyer audience was critical to maximising sale proceeds.

Our Approach

We developed a comprehensive marketing strategy targeting likely potential investors in order to drive multiple bids. The strong covenant strength of the dental practice tenant and the prime location generated significant buyer interest, creating competitive tension that drove multiple offers above the guide price.

The Outcome

The property successfully completed in June 2021 at a sale price 20% above the initial asking figure after a competitive bidding process, reflecting a net initial yield of 5.77% for the purchaser. This outcome showcased our ability to maximise investment property values through strategic marketing and effective stakeholder management.