TRANSFER OF GVA GRIMLEY AUCTION BUSINESS TO SVA PROPERTY AUCTIONS LTD

You may have heard, either via correspondence or articles appearing in the trade press, that GVA Grimley have transferred their property auction business to SVA Property Auctions Ltd. As a result, GVA Grimley ceased trading their auction business at the end of December 1998. We have now established SVA Property Auctions, which is providing the same full auction service that was previously available from GVA Grimley. We continue to co-operate closely with GVA Grimley, to ensure that both firms' clients are able to benefit from the full range of services previously available.

By way of background to the new firm, we are pleased to announce that David Graham, FRICS, has agreed to be a Consultant to the business. Some 15 years ago, David re-established large scale commercial property auctions in Scotland after this method of disposal had largely been ignored for many years. The initial, 98% successful, sale in February 1984 was at the behest of British Railways Property Board. Shaun Vigers worked with David throughout this period, initially as his assistant and subsequently graduating to share the rostrum with him in 1994.

Shaun was appointed Head of GVA Grimley's Auction Department, upon David's retirement from the firm in 1995, and they have continued to work closely, sharing the survey and rostrum work up until the last GVA sale on 18th November 1998. This relationship continues within the context of the new business.

Over the last fifteen years, they have conducted approximately 72 auctions at locations throughout Scotland, the majority of which have been held in Glasgow. We have offered over 3000 Lots selling on average over 80%. Clients have included British Rail Property Board, BT Group Property, Scottish Enterprise, all the major Scottish and English banks, several Local Authorities, ScottishPower, many public and private property investment and development companies, as well as private individuals and pension funds.

Most recently, as GVA Grimley, they conducted a highly successful auction in Edinburgh for East of Scotland Water, which completed their 1998 auction season. During that year they held five sales, offering over 200 Lots of which 80% were sold raising over £4.34m for a wide range of clients including Rail Property Ltd. Against this background, they are confident that all existing clients would wish to continue to benefit from the advantages of selling property by auction.

SVA Property Auctions held five sales during 1999 achieving an average disposal rate of 83% and raising over £4.3m for a variety of corporate and private clients. New clients who successfully offered property at auction during 1999 include West of Scotland Water, Trillium, Airdrie Savings Bank, Strawson, Teesland, Cheviot Investments, Fife Council and Scottish Coal.

During March 2001, they held two auctions through which some 62 Lots were offered of which 88% were sold, raising £2m. The highlight of these sales was the successful disposal of the former Broadfield Hospital, for £725,000. It is believed that this sale represents the largest lot ever sold under the hammer in Scotland.

For the year as a whole, we held 6 auctions including our inaugural Edinburgh sale which was conducted principally on behalf of East of Scotland Water. Overall, we offered over 250 Lots and maintained an average disposal rate of circa. 85% raising in excess of £5 million for various new clients including Rail Property Ltd, Highlands and Islands Enterprise, Boots and Ladbrokes.

Our year 2001 programme kicks off with sales in February and March (see Programme of Sales page) with the preliminary plans being formalised to conduct a second auction in Edinburgh towards the end of May.