Quarter 4 2023 by The Acorn Group

Q4 2023

What’s inside... Editorial

The Update

Quarter 4 2023

Jeff East explains how we diversified in a tough market to make 2023 our busiest year yet…

Transactions

Shops, offices, investments, halls, day nurseries, development sites – read all about it!...

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@acorncommercial

acorncommercial.co.uk

We deal with people, not just their properties. Put a face to our names on page 7…

Quarter 4 2023 Acorn’s Commercial & Development Division celebrates 25 years of trading in 2024, and we plan to make it a good one. There’s no doubt that market conditions were challenging in 2023 but an early move to focus more time on commercial sales, lettings and investments ensured that we improved upon 2022. In fact, we got on such a roll that we concluded more deals in 2023 than ever before, including a staggering 50 in the final quarter alone! The best people learn the most when they are challenged, and I’ve no doubt that the current team is the strongest we’ve ever had. We’re motivated, we know our stuff and we’re keen for your business.

In a nutshell Location

Beckenham BR3

Price

£34,000pax

Type

LET

Location

If you have a property similar to anything you see over the coming pages and you’re looking to sell or let in the coming months, please get in touch with one of our offices.

Jeff East — Director

1,700 sqft offices

Grove Park SE12

Price

£620,000

Type

SOLD

Shop & 3 flats

Jeff.east@acorngroup.co.uk

Location

West Kingsdown TN15

Price

£57,000pax

LET

Type

4,271sqft offices

Location

Bromley BR1

Price

£230,000

Type

Bromley BR1

ACQUIRED

While fully-fitted, well-presented, and Ofsted registered for 45 children, this day nursery on the outskirts of Bromley had ceased trading after the owners completed a strategic review of their Day Nursery portfolio.

Location

Bermondsey SE1

Extending to over 4,000sqft and with consent to increase capacity to 60 children, we were confident of finding a ready, willing, and able buyer within a short time frame. A sale was agreed after a limited period of marketing, and the sale completed promptly before Christmas 2023. We urgently require more day nurseries both for sale and to let, and also as ongoing investments.

Retail investment

Price

£35,000pax

Type

LET

Vacant retail unit

Beckenham BR3 We recently completed the sale of this converted former dairy – the third time we’ve managed its disposal over the last decade or so. In fact, it served as Acorn Commercial’s first base when the team was established back in 1999! Arranged as offices and extending to c3,000 sqft, we acted on behalf of a care provider, and introduced an energy consultancy company that will make use of the property as their new HQ. Regardless of the state of the debt market we continue to experience high demand for freehold office space both for owner-occupation, and conversion to alternative uses including education and residential.

Wimbledon SW19 Acting for the Wimbledon Air Training Corps, we concluded a prompt sale of their redundant meeting hall in the final quarter of 2023. The ATC had received numerous direct approaches from interested parties, and we were recommended by their surveyor. We ascertained which of the potential buyers had the wherewithal to deliver the unconditional sale that our clients required, and managed a competitive bidding process to ensure that full value was achieved. The no-nonsense approach of one particular buyer appealed to the clients and their requisite time frame, and true to his word, the preferred bidder duly delivered.

In a nutshell Location

Bermondsey SE1

Price

£465,000

Type

SOLD

Retail Investment

Location

Eltham SE9

Price

£40,000pax

Type

LET

1,970 sqft office unit

Location

Brixton SW2

Bromley BR1 With bookmakers increasingly moving online, we’re seeing more High Street freeholds coming to the market. The only minor issue being that their sui-generis use doesn’t benefit from any form of automatic reversion under the most recent Use Class Order. This property is typical of most former betting shops in that the upper parts had been blocked-off and left redundant partly for security reasons, and to mitigate business rates. We helped the owner secure E class use, and then arranged a sale to a thriving chain of sushi restaurants.

Price

£150,000

Type

SOLD

Vacant retail unit

CGI

Location

Charlton SE7

Price

£45,000pax

Type

LET

Turnkey bar/ restaurant

Bromley BR1 Location

Beckenham BR3

Price

£260,000

Type

SOLD

Retail investment

The development market was challenging throughout 2023 but that didn’t stop us selling sites. We’re expecting better market conditions in 2024, and most active developers are starting to ensure that they have the pipeline to satisfy increasing demand from homeowners seeking the convenience, quality and efficiency of a new home. This backland garage site has consent for two smart houses, and found a buyer at c35% of GDV.

Bromley-by-Bow E3 This attractive building with E class use formerly housed the London Gas Museum, and is conveniently located on a modern industrial estate within easy reach of the City. Largely of period construction, our clients added a strikingly modern extension in 2020 and refurbished the majority of the c6,500 sqft floorspace. With their tenants moving to a remote working model, we were instructed to seek a sale or letting of the entire building. Several offers were forthcoming, but we ultimately sold to an educational services provider expanding out of smaller premises in Bethnal Green.

Forest Hill SE23 When we received a call from a previous client to appraise a refurbished factory we expected it to be smart, but this space was unreal! The finish was so good you could eat your dinner off the new polished floor, which is just as well given that we quickly found a Japanese bakery business keen to take a long term lease. Largely open plan and single storey, the building extends to c11,500 sqft and occupies a site just under half an acre. Boasting a new roof with solar panels, a small yard and parking for several vehicles, the letting was concluded at £120,000pax.

In a nutshell Location

Greenwich SE10

Price

£45,000pax

Type

LET

Light industrial unit

Location

Forest Hill SE23

Price

£170,000

Type

SOLD

611 sqft E class unit

Location

CGI

Lewisham SE13

Sidcup DA14 The out-of-town office market is unpredictable, to say the least, but has been very good to us over the last 24 months. We’ve concluded dozens of office lettings including several that have made the recognised sector ‘specialists’ sit up and take note. We look at what type of business certain space suits, the level of budget that might be available and then price accordingly. We recently let the second floor (4,833sqft) at Sargasso on behalf of Bexley Council for £85,785, having also let the vacant first floor space during 2023.

Price

£72,500pax

Type

LET

High street retail unit

Location

Sutton SM1

Price

£300,000

Type

SOLD

Office with potential

Gillingham ME7 Location

Sidcup DA14

Price

£65,000pax

Type

LET

Prominent turnkey restaurant

Sales and lettings are clearly our bread and butter, but there are other ways by which we can add value. When contacted by a private investor for advice on the re-letting of a High Street building, we soon established that the outgoing tenant, Lloyds Bank, sought an early surrender of their lease. Furthermore, the reverse premium being offered was, in our opinion, unattractive. We took over negotiations, and ultimately secured a reverse premium of £250,000 – more than seven times the passing rent, and treble that originally offered.

Meet the Team

Jeff East

Tom Luck

Jamie Stevenson

Blaise Ribbons

Louis Markham

Steven Flannighan

Director

Team Assistant

Daniel Dennis