Update Annual Review 2017 by The Acorn Group

T HE ANNUAL R E V I E W 201 7

ACORN COMMERCIAL

Associate 020 8315 5454 adam.hosking@acorn.ltd.uk

We specialise in the sale, letting and acquisition of commercial properties, development opportunities and investments throughout Greater London and the South East. Over the last 20 years we have earned a reputation as one of the highest profile and most effective agents in the area, and adopt a pro-active approach towards our business. We employ varied and bespoke marketing strategies involving local and national advertising, numerous specialist website portals, direct mailing and social networking to ensure maximum possible exposure. We regularly liaise with our established database of c.20,000 applicants and professional contacts in order to consistently generate fresh enquiries. This annual review provides commentary on a selection of key deals concluded in 2017.

COMMERCIAL AND DEVELOPMENT SITES SOLD LAST YEAR

REGISTERED APPLICANTS & PROFESSIONAL CONTACTS

DEVELOPMENT SITES

SOLD IN THE LAST 12 MONTHS

RESIDENTIAL UNITS ON CONSENTED SITES SOLD LAST YEAR

DEALS WE HAVE COMPLETED IN THE LAST 12 MONTHS

@acorncommercial

acorncommercial.co.uk

SQFT OF COMMERCIAL SPACE DISPOSED OF IN THE LAST 12 MONTHS

Adam Hosking

OUR TEAM

commercial@acorn.ltd.uk

Jeff East Director

Tom Luck Director

Adam Hosking Associate

Emma Fox Operations Manager

Kyle Peters New Business Manager

Tony Wood Projects Manager

Steven Flannighan Projects Co-ordinator

Louis Markham Projects Assistant

Jamie Stevenson Projects Assistant

Lily Whitby Senior Secretary

Emma Cramer Team Secretary

LONDON OFFICE

BROMLEY OFFICE

120 Bermondsey Street London Bridge SE1 3TX

1 Sherman Road Bromley BR1 3JH

020 7089 6555 commercial@acorn.ltd.uk

020 8315 5454 commercial@acorn.ltd.uk

DULWICH SE22 Our investment team was appointed to manage the marketing and sale of this attractive mixed-use freehold in Dulwich by a long term client of the Group. Welllocated on sought-after Lordship Lane; the property comprises a large ground floor A1 retail unit with one 4 bedroom and two 3 bedroom flats in the upper parts; all let on ASTs. Our advice was tailored to suit the property, clients’ requirements and prevailing market conditions: in tandem with a high profile marketing campaign, we encouraged our client to engage the services of a recommended solicitor to prepare a legal pack. This would enable us to ensure a quick and efficient exchange of contracts. After holding several block viewings, we received a host of offers, and promptly agreed a sale at £150,000 in excess of the guide price. Contracts were exchanged expeditiously and at a NIY (net initial yield) of just 3.79%! Needless to say, our efforts in securing such a robust price for the property resulted in a very happy seller.

ELTHAM SE9

“Acorn were pivotal in securing a sale of our investment in Eltham. Tom and the team managed the entire process with the utmost of professionalism, achieved a higher price than we’d expected, and all comfortably inside our anticipated time frames.”

In 2014, we were asked to advise a private client who owned a former public house on the prominent Five Ways junction of the A20. The existing property was let to a Burger King franchise with the lease coming to an end. Our client had recently retired, and ultimately wanted a secure income that in due course he could pass to his children. At the time he was reluctant to sell for tax reasons. Knowing that Premier Inn had a requirement in the area, and given that the location was ideal for a hotel, we structured a deal whereby Whitbread took a long lease (999 years with breaks every 25 years) over the land. The deal was negotiated such that Premier Inn paid an initial premium, and an annual rent higher than the amount being paid by the previous tenant. In return, Premier Inn effectively had control of the land to develop and trade a hotel from the site. Planning permission was granted and a 91 bedroom hotel with parking and a bar/ restaurant facility was constructed. The outcome was that our client had long term income from one of the best covenants in the UK (5A1) and continued to own the freehold of a valuable investment!

Client: Private Investor

Towards the end of 2016, once the hotel was open and trading, our client contacted us again advising that his circumstances had changed and asked if we would sell the investment. We set about the marketing, and ultimately concluded a sale at a gross yield of 3.64% to a private family investment fund. Contracts exchanged within 3 days, and completion took place in early 2017.

Project Date: March 2017

If you own a property or site that appears to offer alternative use potential, please contact us for advice on maximising value.

Location: New Eltham SE9

PENGE SE20

Property investments of all types proved a hot commodity during 2017, and we can’t see any reason why that will change all the while that interest rates remain low. Our investment team had no trouble locating a buyer for this mixed-use asset, and at £75,000 more than our client had expected to achieve. Comprising commercial income from a well established main dealer and the ground rent income from 9 flats and 3 shops, the sale was concluded at a NIY of 6.3%. Please get in touch if you have a similar property to sell.

KENNINGTON SE11 The owners of this warehouse in Kennington were retiring and had both a price and a specific time frame in mind for a disposal. Their property sat in an area masterplanned for development. Whilst this underpinned a likely value much higher than for continued commercial use, the property only formed a small part of the allocated site. A sale subject to planning permission may well have been achieved at a higher price, but the extent of the development potential was unclear, and was likely to take some time to crystalise. With this in mind, we set about a national marketing campaign on an unconditional basis. Interest was strong, and there must be some inherent potential given that Lambeth Council proved to be the best bidder! The Council promptly completed its purchase, and our clients were delighted with the closure that the sale brought about.

ELTHAM SE9 In the majority of cases our services are rendered on behalf of the landowner, but occasionally circumstances require us to introduce a retained client. Aware that the owners of this prominent commercial site had a historic planning consent and the desire to sell, our development team introduced award-winning retirement developers, Churchill Retirement Living.

PECKHAM SE15

A developer client acquired this attractive Victorian former schoolhouse unconditionally from the NHS, and successfully secured planning permission for its extension and conversion to form 8 residential apartments.

A conditional deal was agreed off market, and Churchill successfully secured full planning permission for the construction of 38 self-contained retirement apartments. The previous owners acquired alternative premises in Orpington, and our sale completed in February 2017. If you have a property to sell, but for whatever reason don’t want to go to market, please get in touch. Our vast experience and extensive database of buyers will ensure we can still maximise value on your behalf.

“Although we had previously used Acorn’s New Homes department to sell completed developments, this was the first time we instructed the commercial team to dispose of a development site for us. Acorn’s marketing campaign was spot on, not only were we delighted to achieve more than expected, but their straight forward no-nonsense advice and communication throughout the transaction was greatly appreciated. We wouldn’t hesitate to instruct Jeff and his team again.”

Following a thorough valuation exercise, our development team was appointed to manage the sale of the property. In parallel with our national marketing campaign we worked closely with our client’s lawyers in preparing a full legal pack. Location: Peckham SE15 Client: Lightbox London Project Date: April 2017

Our advertisements, circulars and historic database generated considerable interest, and each of the block viewings were very well attended. A host of offers were received, and the legal pack enabled us to exchange contracts in just 5 days. Completion was deferred until vacant possession could be provided, and successfully took place in April 2017. Our clients were delighted to achieve £300,000 more than the guide - a sale price that reflects 51% of the GDV.

FULHAM SW6

There’s absolutely no doubt that this parade of shops in Fulham was one of the most hotly contested properties that we sold in 2017. In fact we didn’t even get the chance to advertise the property, such was the interest generated from our database and the acorncommercial.co.uk website. The parade comprises a terrace of 11 small shops with ancillary commercial upper parts. Only 7 of the units were let, with the other 4 vacant and requiring refurbishment. At the point of sale the parade was producing £102,250pa, and we invited offers in excess of £3.75 million for the freehold interest.

Location: Fulham SW6 Client: Beacon Property Capital LLP Project Date: June 2017

We very quickly received several offers in excess of £4 million, and accepted a bid of £4.25 million on the basis of a 24 hour exchange. At our request the seller’s solicitor had prepared a full legal pack pending a sale, which enabled the buyers to exchange unconditional contracts in just 8 hours! Completion took place in early June 2017, and clearly we’d be delighted to hear from you if you have a similar property to sell!!

LOUGHBOROUGH JUNCTION SE24 We were appointed by Gateley Plc and Begbies Traynor acting as liquidators to market and dispose of this former scrap yard in Herne Hill. Our clients were seeking a prompt unconditional sale and so a structured marketing campaign was undertaken with a deadline set for offers. A range of bids were received for the site and contracts were exchanged with the selected buyer within two weeks from acceptance of the offer. Completion of the sale took place just two weeks thereafter, and the final sale price achieved was 30% in excess of the guide price. We often act for Recievers and Administrators, and pride ourselves on offering a committed, and totally transparent service.

“We had intended to develop the parade ourselves but were persuaded by Acorn to bring it to the market. This proved to be excellent advice, and we couldn’t have imagined how well it was received and handled by Acorn. We look forward to working with them on future projects.”

ELEPHANT & CASTLE SE17 We relish the challenge of a deal that’s a break from the norm, and in this instance the sale of this industrial unit in Elephant & Castle required a delicate approach. Owned by a private client, this property directly faces the new Elephant Park regeneration scheme, and clearly offers development potential. The issue, however, was that our client owned a leasehold interest (70 years unexpired), and the freehold is owned by the Local Authority. We explored the possibility of enfranchisement, and asked the Council to sell their freehold, but got no joy on either front. The Council did, however, show interest in acquiring the unexpired lease themselves, but clearly we expected to achieve a development premium. To assist in agreeing terms, local architects were engaged to explore the development potential of the site. The architect’s appraisal encouraged the Council to pay a reasonable premium to simply surrender the lease. We simultaneously agreed for our client to remain in occupation under a short term licence, and despite a modicum of red tape, the entire transaction was concluded swiftly.

BECKENHAM BR3

BERMONDSEY SE16 “Whether buying or selling, Acorn’s development team are able to get control of what can be a complex and unpredictable process. Their advice enables clients to focus resources and time on achieving realistic outcomes that maximise returns.”

Acting for the partners of PJH Solicitors, we concluded the sale and leaseback of their prominent headquarters building, Kelsey House, in central Beckenham in the summer of 2017. The detached building comprises a ground floor bar/restaurant with four floors of offices and a residential apartment above; mixed use in the truest regard!

Our development team acquired a pair of redundant filling stations in Southwark on behalf of a private client back in 2014. Planning consents were forthcoming on both sites in 2016 but during the planning process for this particular site, an Area Action Plan for the wider Old Kent Road area was mooted by Southwark Council. Shortly after our clients secured permission for 34 units, the draft Old Kent Road Area Action Plan (OKRAAP) was published and showed the site sitting in a ‘core area’, which suggested that a higher density is appropriate. Having committed to the construction of the other site, our clients took the decision to sell the Bermondsey property.

Offering future potential for active management, extension and/or conversion to residential, our instructions were to generate maximum interest in order to achieve the best possible freehold value. Our marketing campaign was a resounding success, and several offers were received above the guide for a variety of different uses.

Location: Bermondsey SE16

We ultimately concluded a sale to a private investor at more than £4,000,000 – a figure that reflects a healthy £270/sqft, and a NIY of just 6%. The new owner intends to maintain the commercial use, but undertake a programme of improvement and active management.

Client: Private Investors Project Date: June 2017

NORBURY SW16

We’ve sold several redundant police stations over the years – the most recent being this fine building on London Road in Norbury. Owned by a private investment company, the property was offered for sale with planning permission for the conversion of the main period building, and construction of a new apartment block to the rear. The approval allows for a total of 22 apartments with ground floor commercial space. A high profile marketing campaign was undertaken, and offers were received from a wide variety of potential purchasers. A sale was ultimately concluded at £3.4m to a regional developer – a figure that reflects more than £230,000 for each of the private plots.

We employed a typically high profile marketing campaign quoting a guide of £5.5 million for the 34 plots (including 8 affordable units). We succeeded in generating considerable interest, and received 9 offers ahead of the guide; including several over £6 million. Terms were agreed with a student housing developer, contracts were exchanged inside 3 weeks, and completion occurred in June 2017. The final sale price was 11% ahead of the guide, and represents a private plot rate of over £234,000.

CORPORATE ASSET SERVICES

Our Corporate Asset Services team has been advising banks, lenders, administrators, Receivers, institutions and charities for over 25 years, and employs tailored solutions in order to maximise the value of assets controlled by corporate and institutional clients. Far from simply being a sales service, we offer detailed, practical advice that might involve a recommended scope of works, the introduction of tenants to a vacant property or a bespoke marketing campaign.

Tony Wood Projects Manager 020 8315 5454 tony.wood@acorn.ltd.uk

ST LEONARDS ON SEA & BLACKHEATH SE3 Some of our clients include: ‘Acorn’s knowledge of South East London and Kent is unparalleled, and we are confident that they achieve the highest possible value for us as their clients. They are patient, professional, and straight-forward, and we can’t imagine turning to any other agent to handle such a transaction.’

Acting on behalf of a major care firm, our Corporate Asset Services team managed the disposal of several surplus care homes during 2017. Our client has undertaken a strategic review of its considerable portfolio, and our role is to dispose of the buildings that are non-compliant, or no longer fit for purpose. The proceeds generated are being recycled to improve other properties, and acquire new sites. Two of the properties sold are located at each end of St Leonards-on-Sea, on the East Sussex coast. Clyde House comprised a 43 bedroom care home arranged over three storeys on a plot of almost an acre. We concluded a sale to a local private school at £1.5m. Leolyn care home comprised 32 bedrooms in an attractive 4 storey building of more than 12,000 sqft. The property was sold to a Registered Provider (Housing Association) at £1.3m for use as emergency residential accommodation. Both properties benefited from local and national marketing campaigns, the block viewings were well-attended, multiple offers were received and in both cases we exceeded our client’s price expectations. The third property sold for the same care firm in 2017 sits on Blackheath’s prestigious Cator Estate – one of the most sought-after residential locations in South London. Arranged as 32 bedrooms and extending to over 10,000 sqft, our

instructions were to secure the best possible price on an entirely unconditional basis. A typically high profile and thorough marketing campaign was undertaken, but we anticipated that a local buyer would be best placed to understand the true value. Sure enough a longestablished local firm bid almost 25% over the guide price and committed to exchange contracts within 10 working days. Proving true to their word the buyers quickly concluded their acquisition, at £3m on an entirely unconditional basis We are always seeking instructions to market similar freehold properties, so please contact us if you have a similar asset to sell.

BROMLEY BR1

ASSET & EQUITY MANAGEMENT Where our Corporate Asset Services team looks after corporate and institutional clients, our Asset & Equity Management Services are provided for private clients. We focus on strategic acquisition and deployment of equity in property-related projects for both individuals and consortiums, and fulfil an all-encompassing management role for several private investment vehicles. We buy with an eye on planning gain, active management angles or breakup potential, and we sell with a firm focus on maximising returns for our clients.

Jeff East Director 020 8315 5454 jeff.east@acorn.ltd.uk

Residential portfolio in the heart of Bromleyâ&#x20AC;&#x2122;s busy town centre bought from Executors by private treaty in May 2017. The portfolio comprises 9 apartments and 1 house; all let on ASTs. Many of the properties require refurbishment, and we are procuring vacant possession as each tenancy expires. Ultimately the portfolio will be the subject of a piecemeal disposal.

BECKENHAM BR3

Residential apartment block on the outskirts of the town centre acquired by private treaty for a managed investment vehicle. The property offered immediate income and active management potential, and we have undertaken a programme of initial refurbishment works to some of the individual units and common parts.

GREENWICH SE10 Redundant former public house acquired at public auction. The property has the benefit of planning permission for the reinstatement of the A4 use, and extension and conversion of the upper parts to provide two, 2 bedroom apartments We are pursuing a full planning application for a new 5/6 storey building comprising a ground floor A4 unit and eight apartments.

BERMONDSEY SE1 Redundant freehold office building acquired out of Receivership via public auction. The property offers more than 3,000 sqft of B1 office space just a short walk from London Bridge station. We secured planning permission for elevational changes, before the property was sold in January 2017.

LEWISHAM SE13

PLANNING MANAGEMENT Our Planning Management Services are offered to private landowners, charities and institutions in order to ensure that the full value is extracted from a property prior to a disposal. The planning process is expensive and time-consuming. Our experience, expertise and professional contacts leave us perfectly placed to assist clients that may not have the knowledge, time or finances to tackle a planning application themselves.

Key town centre site prominently positioned on the High Street. We’re pursuing an application for 51 residential units above ground floor retail space. The anticipated GDV is c. £25m.

Tom Luck Director 020 8315 5454 tom.luck@acorn.ltd.uk

CROYDON CR2 Vacant site in an entirely residential street, with a chequered recent planning history. Following a single pre-application meeting, Croydon Council approved our application for 8 residential units within eight weeks. The project value is c. £3m.

BECKENHAM BR3 Brownfield site on the edge of the town centre; bordering a Conservation Area. Our application proposes the comprehensive redevelopment of the site to provide 30 residential units in a new 3/4 storey block. The GDV is c. £12m.

PECKHAM SE15

GREENWICH SE10

Strategic site in the heart of the Old Kent Road regeneration zone. Acting for the major landowner we’ve completed the land assembly, and made an application for a 19 storey building. The scheme comprises 107 residential units, 40,000 sqft of retail, offices and light industrial space and a new place of worship. The project value is c. £55m.

Derelict site in Greenwich’s former dockyard close to the town centre and The Cutty Sark. Our full planning application proposes a 5/6 storey building comprising 8 apartments over flexible ground floor commercial space. The GDV is c. £5m.

LOUGHBOROUGH JUNCTION SE24 Industrial estate located within the Loughborough Junction regeneration zone. On behalf of the private land owner we employed a professional team to conceive a scheme for c. 9,000 sqft of B1 employment space and 21 luxury apartments with a GDV of c. £12m.

Founded in 1984 as a one-office, independent estate agency, The Acorn Group now employs over 400 staff, working from over 30 different offices and divisions.

LAST YEAR WE SOLD

Still privately owned, the companyâ&#x20AC;&#x2122;s growth has seen the incorporation of other leading brands including John Payne, Langford Russell, MAP Chartered Surveyors and Start Financial Services. The Acorn Group has been providing specialist property advice and a tailored service to private and corporate clients for over 30 years. Our highly trained team has a broad skill base, which enables us to supply the relevant professional support at every stage of each transaction. Over the years, with the continued growth of our business, we have never lost sight of the fact that we work in a service industry. The fundamentals of customer care are still applied in the same way today as the day we first opened our doors.

OVER

ABOUT THE GROUP

OFFICES ACROSS SOUTH LONDON & KENT

Robert Sargent Chief Executive Officer

WORTH OF PROPERTY

STAFF EMPLOYED

WORTH OF MORTGAGES ARRANGED

LONDON HEAD OFFICE

PEOPLE WE HAVE HELPED FIND THEIR NEW HOME IN THE LAST 12 MONTHS

GREENWICH

SOUTHWARK

BEXLEY

LEWISHAM DARTFORD

WE CARRIED OUT

OUR DATABASE HAS OVER

SURVEYS

PEOPLE LOOKING FOR PROPERTY

WE CONDUCTED OVER PROPERTIES VALUED CROYDON

Opening Soon

VIEWINGS

LAMBETH

BROMLEY HEAD OFFICE

BROMLEY

SEVENOAKS

NEW HOMES DIVISION

PRIVATE RENTED SECTOR

Our experienced New Homes team have built a reputation as market leaders, and are able to offer expert assistance whether you are looking to either buy or sell a new home anywhere throughout London and the South East. We have been providing specialist new homes advice and a tailored service to private and corporate clients for 30 years. Our personnel have an in-depth knowledge of each geographical area of operation, our sales negotiators operate from each of our key offices, and our computer linked network ensures maximum exposure to our purchaser database for each of our developments.

The Acorn Group is the number one agent in London for PRS management (figures supplied by Molior) while also representing two of the top 5 PRS developers in the country, as well as a host of others. The Acorn Group has operated in the private rented sector since 1989, where we were one of the first residential agency businesses to understand the significant commercial impact that the 1988 Housing Act would have on the sector, as well as our own business. Throughout the ensuing buy-to-let boom, we continued to invest in our residential lettings division and today we manage a portfolio of over 5,000 properties.

A full sales and marketing report is created for each scheme with the help of The Acorn Groupâ&#x20AC;&#x2122;s specialist valuation panel, and our in-house PR department; who provide all aspects of development branding for clients.

Akin Kara Head of New Homes Division 020 8315 6996 akin.kara@acorn.ltd.uk

As well as letting and managing sites throughout Greater London and the Home Counties, we are also able to provide our services for schemes outside of our areas of operation; deploying teams on site to handle the launch and lease-up of an asset.

Client:

Client: The Purelake Group

Client:

Location:

Beckenham BR3

Camberwell SE5

Date:

March 2017

January 2017

No of Units:

Wigmore

Karl Thomas Senior Lettings Manager 020 8315 6917 karl.thomas@acorn.ltd.uk

London & Quadrant

Client:

Location:

Aitch Group

Lewisham SE13

Location:

Date:

Deptford SE8

February 2017

Date:

No of Units:

August 2017

238

No of Units:

Unit Mix:

Studio, 1, 2 & 3 bedroom apartments

Unit Mix:

Client:

The Hyde Group

Longharbour

Client:

Location:

Beckenham BR3

Croydon CR0

Horn & Horne

The Purelake Group

Location:

Date:

May 2017

November 2017

New Cross SE14

Sevenoaks TN14

Date:

No of Units:

July 2017

February 2017

No of Units:

Unit Mix:

1 & 2 bedroom apartments

Client:

1, 2 & 3 bedroom apartments

PROPERTY & ESTATE MANAGEMENT From a simple leaking tap, through to a full scale refurbishment; the creation of an AST or a phased renewal plan to increase an assets annual rent roll, we have the resources available to guide our clients through any situation that may arise throughout a tenancy. Our tenants have access via their smartphone, laptop or PC to an easy-to-use, web-based application that enables them to advise us of any problems. If the tenant needs to report an emergency or urgent matter outside of office hours, they have access to our out of hours emergency maintenance team. With a tailored management strategy for each client and key financial reporting, our aim is to maximise your income whilst minimising any inconvenience to you.