PRIME sites in York's most exclusive streets are within the reach of smaller investors for the first time in decades, according to city estate agents.

No fewer than six occupied city centre premises are going under the hammer in London next week.

Almost all of them are likely be bought by smaller local investors, who fear stock market uncertainty and want "bricks and mortar".

The boom is happening because major pension funds, which own many of the city centre's prime retail properties, are freeing them up for auction as they, in turn, look for larger investment opportunities.

Andrew Hedley, of York commercial property consultants Alan Black & Co, says the move is good news.

"North Yorkshire has an abundance of individuals able to afford opportunities of this type now," he added.

"With stock market uncertainties, and perhaps profits from the high-tech share boom of 2000, the small investor is now looking once again for bricks and mortar."

Mr Hedley said that many investors, who have made money on the stock market, believe that stocks and shares will be affected by the war on terror. They then perceive that commercial property could represent a safer investment.

Key to the benefits of buying a lease at auction is the "full repairing and insuring" clause, which means the buyer does not have to sort out maintenance problems with the property. That is left to the tenant.

Properties to be sold next week include the premises of Athena, in Feasegate, Lunn Poly and The Pocket Phone Shop, in Coney Street, and Alexandra, in St Sampsons Square.

Lunn Poly's premises, 11 Coney Street, are marked with a guide price of £1 million, while the Athena property is marked at about £700,000.

Others include the premises of the Paul Smith shop on Low Petergate, and Millets on Market Street.

None of these businesses will close as a result of a new buyer; indeed, the buyer's main aim is to keep the tenant in place, as it will be the income provider.

Mr Hedley said: "If a buyer pays a guide price of £1 million for these properties at auction, and the rent from the tenant is, say, £72,000, it will produce a return to the investor of 7.2 per cent profit.

"That will more than cover the cost of borrowing money, which might be around six per cent.

"The market is very buoyant; all this activity appears to suggest that it is a good time to sell and a good time to buy."

Updated: 08:42 Thursday, October 11, 2001