The Dreadnought Update
For those unfamiliar, the Dreadnought is the former pub located along the Thames, nestled between East Reading and the Wokingham Waterside Centre.
Recently auctioned off by first-year students from the University of Reading, it surprisingly sold for over double its guide price, totaling £424K!
However, it seems the winning bidder hasn’t managed to secure the deposit, so it will be going back up for auction.
Steve Berry shared his thoughts on Facebook about the situation:
The property is being re-auctioned at the end of the month. I had a feeling it would be relisted once the buyer recognized the numerous challenges involved.
The agent confirmed that the buyer’s failure to provide a deposit is why it’s back on the market.
This is typical when someone conducts proper due diligence post-auction.
You really shouldn’t bid £424K without having the funds available.
When you factor in the additional stamp duty of £30K, along with solicitor and auction house fees, the total jumps to around £460K.
There’s also a sitting tenant on the first floor, and the EPC rating needs to be upgraded from a G to a D (eventually to a C). Additionally, there’s another tenant, the canoe club, locked in until 2027, no parking available, and restricted access.
I was genuinely surprised when it went for £424K. Given all the restrictions, my estimation would be closer to £200K.
It will be interesting to see how potential bidders value it this time around.
On the bright side, anyone who missed out last time will have another opportunity to bid!
It sounds like the Dreadnought Update has definitely stirred up some interest and conversation! It’s surprising to see such a high initial bid and even more surprising that the winning bidder couldn’t follow through. The various challenges mentioned, like existing tenants and needing to upgrade the EPC rating, could definitely deter some potential buyers.
It’s a great opportunity for anyone who missed out last time to reconsider their bidding strategy. Given the complexities and costs involved, it seems like realistic valuations will be key when it goes back up for auction. It’ll be interesting to see how the bidding plays out this time around. Do you think the auction will attract more cautious bidders now that they know about these restrictions?