THE UPDATE 1st QUARTER 2019
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READING IS MY
SUPERPOWER CALL FOR UNWANTED BOOKS
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On page 2...
We continue to achieve premium prices for consented sites…
On page 5...
Offices with a unique internal layout sold in Feb 2019…
On page 6...
In a nut shell — a snapshot of business concluded across the team...
On page 8...
The Acorn Book Club announces its next community project…
EDITORIAL
Time certainly flies by these days — it’s difficult to believe that we’re already through the first quarter of 2019!
I’m not going to focus on Brexit in this editorial, not because it isn’t important, or having an impact on the market, but because it’s throwing up some exciting opportunities that I’m sure you’re more interested to hear about. I mentioned in my Christmas comments that lots of developers seem comfortable to sit on their hands at the moment. I also predicted that the inevitable rush for opportunities will ensue when someone important tells us all that market conditions have ‘recovered’. As a further prediction, I’m pretty confident that the buyers of the following three properties will make a tidy profit from the aforementioned rush… Case 1 — A detached bungalow on a quarter acre plot in a highly sought-after road in LB Bexley. We’re selling for the family of the longterm owner, and they’re keen for a prompt sale. With a wide frontage, rear access and much taller buildings adjacent and opposite, it couldn’t be a more obvious candidate unless it had ‘development site’ written all over it. We’re guiding at £650,000, but with planning permission in place it’s quite possible that the property will be re-sold at double that.
Jeff East — Director
jeff.east@acorn.ltd.uk
Case 2 — Another freehold site in LB Bexley (who are very much pro-development, by the way). This one comprises 2 shops, a flat and a warehouse of over 10,000sqft (see page 3). Part-let producing £54,000pa, the ERV is £120,000+, and redevelopment of the warehouse alone should produce 9 apartments stpp. Guided at £1.25M, it seems highly conceivable to me that by promoting the rear
site, the eventual buyer will end up holding the shops and flat for nothing.
Case 3 — Royal Greenwich this time – one of the UK’s most historic and sought-after residential locations. We’re offering a detached building arranged as a 3 bedroom house, along with a detached coach house and rear plot with permission for 3 new houses. The quarter acre plot sits adjacent to a 4 storey block, and opposite another of 12 storeys. Suffice to say we reckon there’s a good chance that a canny buyer will secure planning permission for a high density scheme of apartments. Yours at a touch over £1.5M…
So, three prime sites, in strong London boroughs; all at a relatively affordable lot size for your average London developer. The only trouble is that the vast majority of such buyers are still sitting on their hands. So, if you’ve got pins and needles, or if you’re a little bored of seeing your PT every day, why not give us a call? Failing that, we’re still selling lots of consented sites, and the premiums aren’t dropping, so get in touch when Brexit is done and dusted. There might be a bit of a queue though!..
In other business, you’ll see over the following pages that transaction numbers are good across all sectors. I’m not saying it’s easy – it isn’t, but hard work is still bringing about results. Sensible pricing is also key, so we’ve purposely included prices and/or yields against most of the properties, so readers can see the level at which the market remains fluid. We’re always keen to add to our pipeline, so if you’re a motivated seller, buyer, landlord or tenant, please contact one of our offices, and let’s do some business.
PURLEY CR8 At the risk of sounding like a broken record, the premiums that we’re achieving for consented sites continue to remain buoyant. Buyers and developers like the smaller sites, and Help To Buy is ensuring a steady rate of sale as long as the product is of good quality.
We shouldn’t have favourite buyers, but JP Whelan Homes are on our non-existent list! They’re a good old-fashioned family firm based in North Kent, have a long track record and excellent reputation. We haven’t sold to them for a few years, but were delighted when they topped the bidding for this 7 unit scheme less than a mile from Purley Station. The sale duly completed at £150,000 per plot, and our New Homes team are looking forward to having another quality scheme to market later in the year. Please get in touch if you have a site to sell — we can’t get enough of them!
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1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
120 Bermondsey Street, London SE1 3TX 020 7089 6555
acorncommercial.co.uk commercial@acorn.ltd.uk
HERNE HILL SE24
MORE LIKE THIS...
We had been aware of this derelict Victorian-built former dairy on Rosendale Road for many years. In fact we’d given advice both to the owners, and several prospective purchasers on a number of occasions. Quite why a sale hadn’t been concluded earlier is debatable, but when offered the opportunity to arrange a prompt unconditional sale we weren’t going to let it pass us by! Understandably the owners had high hopes in terms of value. The site has a footprint of over 10,000sqft, sits in a very appealing spot and looks ripe for the picking in terms of development. We implemented an intensive marketing strategy and set about generating interest via our extensive retained database, national advertising, web postings and targeted social media campaigns.
Several block viewings were held, and a host of offers were received on an entirely unconditional basis. A full legal pack had been readied alongside the marketing, which enabled us to ensure that contracts were exchanged in just a couple of weeks prior to Christmas. The sale to a private property company at £250,000 over the guide completed early in the New Year, and the new owners are in the process of preparing a planning application.
We’ve been selling development opportunities across Greater London and the South East for over 25 years, and our expertise is simply second to none. If you have a development site to sell, with or without planning permission, please contact one of our offices for a free market appraisal.
1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
120 Bermondsey Street, London SE1 3TX 020 7089 6555
FOR SALE
BEXLEYHEATH DA6 Mixed-use investment and development opportunity comprising two shops, a 2 bedroom flat, yard area and over 10,000sqft of warehousing on a quarter acre site. Part-let producing £54,180pa, the property offers letting, active management and development potential (stpp). Unconditional sale sought.
GUIDE £1,250,000 F/H
acorncommercial.co.uk commercial@acorn.ltd.uk
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PLUMSTEAD SE18 A freehold former doctor’s surgery occupying a prominent position facing Plumstead Common. Arranged to provide 4 consulting rooms and ancillary offices, the property was offered both with D1 use, and planning permission for partial conversion to residential apartments. D1 is one of the few use classes that can occasionally trump C3 in terms of value, and in this particular case our buyer intends to continue the D1 use by opening a day nursery.
HARINGEY N15 This mixed-use freehold was sold on behalf of a private client for £825,000. Comprising £15,000 of commercial income, a first floor flat let on an AST, the ground rent from an upper flat and two partially finished residential units to the rear, it certainly offered no shortage of angles. We were able to generate a host of offers in a very limited marketing window, and contracts were exchanged within a fortnight.
CRYSTAL PALACE SE19 This freehold, mixed-use investment was sold from one private investor to another in early 2019. Set in the heart of the popular Crystal Palace ‘triangle’, the property comprises a ground floor restaurant let at £38,000pax, and the ground rent income from six residential apartments. We concluded a sale at £600,000 – reflecting a blended NIY of 7.6%. When compared with bank interest rates and other forms of investment, it remains clear why commercial income deals continue to prove popular.
DARTFORD DA1 Vacant freehold commercial properties always prove popular, and usually create competition between investors and owner-occupiers. This stand-alone industrial unit extends to approx. 3,600sqft across a single storey, with a generous yard to the front. Offered fully vacant both for sale and to let, we ultimately sold the freehold to owner-occupiers at a little over £175/sqft. We’re always looking for similar instructions across Greater London and the South East.
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1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
120 Bermondsey Street, London SE1 3TX 020 7089 6555
acorncommercial.co.uk commercial@acorn.ltd.uk
LONDON BRIDGE SE1 London Bridge is one of the capitals hottest office locations, and continues to experience an influx of design, media and tech companies from other parts of London. There’s a reasonable choice of offices to rent in the local market, but opportunities to buy are few and far between. Acting for an investor based in the Middle East, we recently sold a long leasehold suite of offices extending to approx. 1,800sqft over the lower ground floor of this fine period building for a touch under £600/sqft.
CROYDON CR0 This freehold building in West Croydon was converted in the 1980s by an architect for use as his own studio, and boasts one of the most individual internal layouts we’ve experienced. There’s no doubt that it was a visionary design 30+ years ago, and with a light refurb it will continue to impress for many years to come (assuming visitors don’t fall into the indoor pond). Offering around 2,500sqft of offices, we sold to owneroccupiers at £462,500.
TULSE HILL SW2 We were delighted to conclude the sale of this small site in Tulse Hill for the long term owners. Having closed their business and retired, they secured permission for 6 new apartments on part of their land. Set to form a large chunk of their pension, they understandably wanted to maximise the value. With a likely GDV of £2.7M, we were able to generate sufficient interest via our considerable retained database to achieve a land value of over £950,000.
GREENWICH SE10 Freeholds very rarely become available in Greenwich’s historic Town Centre, so when asked to appraise the value of this single storey building, we were confident of securing a considerable premium. Offering just 327sqft of A5 accommodation, we invited offers in excess of £485,000 for the vacant freehold. As expected, we were inundated with enquiries, and ultimately concluded a sale to private investors at a staggering £1,529/sqft!
1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
120 Bermondsey Street, London SE1 3TX 020 7089 6555
acorncommercial.co.uk commercial@acorn.ltd.uk
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IN A NUTSHELL
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1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
BROMLEY BR1
CATFORD SE6
Long leasehold, ground floor offices in a modern mixeduse building acquired for a private investment company. Extending to approx. 2,200sqft, and let to a charity at £42,000pax, our client’s purchase price reflects a NIY of 6% and £300/sqft.
Three ground floor commercial units in a new, mixed-use development close to Catford Station. Totalling approx. 2,594sqft, we agreed a single letting of all three units on behalf of a developer client to a day nursery operator at a rent of £67,000pax.
TULSE HILL SW2
LEE SE12
Former car showroom on the busy A205 South Circular Road at Tulse Hill. We let the 949sqft suite to a family-run sash window company at an initial rent of £35,000pax. Similar retail letting instructions always required.
Our client held a 66 year lease over a retail unit let to a third party at £8,500pax. Our involvement helped establish the underlying value, and we were able to negotiate a surrender to the freeholders for a £200,000 reverse premium.
LONDON BRIDGE SE1
ANERLEY SE20
Attractive 3rd floor office suite approx. 1,180sqft on highly sought-after, Bermondsey Street. Our letting to a publishing firm was completed at an initial rent of £55,000 pax with fixed increases.
Approx 3,900sqft of freehold D1 space most recently utilised as a doctor’s surgery. We were instructed by the retiring doctor to find a buyer, and successfully completed a sale to a day nursery operator at £710,000.
CROYDON CR0
HITHER GREEN SE13
Single storey, detached building in West Croydon approx. 5,000sqft with D2 use and apparent development potential. We sold to private investors at £137/sqft, and have since been instructed to market the property for rent.
Freehold investment comprising a vacant commercial unit and two ground rents. Whilst only 692sqft, we achieved £280,000 subject to change of use of the ground floor to A3 (restaurant).
120 Bermondsey Street, London SE1 3TX 020 7089 6555
acorncommercial.co.uk commercial@acorn.ltd.uk
MEET THE TEAM
Adam Hosking Associate
Jeff East Director
Tom Luck Director
Lily Whitby Senior Secretary
Steven Flannighan Projects Co-ordinator
Louis Markham Projects Assistant
Jamie Stevenson Projects Assistant
Chloe Wiseman Projects Assistant
Could This Be You? If you are interested in joining our team, please send your CV to lily.whitby@acorn.ltd.uk
Emma Cramer Team Secretary
Rosie Davis Team Secretary
REPORTS IN NEXT ISSUE SOLD
SOLD
LET
SOLD
ASHFORD
LET
LEWISHAM
LONDON BRIDGE
SOLD
WEST HAMPSTEAD
SIDCUP
NEW ELTHAM
1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
120 Bermondsey Street, London SE1 3TX 020 7089 6555
acorncommercial.co.uk commercial@acorn.ltd.uk
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The ABC is delighted to announce its new partnership with Cherry Orchard Primary School in Blackheath! Cherry Orchard School are building a Reading Chalet; somewhere calm for students to curl up and read a book when they don’t want to play outside during break time. The ABC will ensure that the Reading Chalet is stocked full of brilliant books and cosy soft furnishings to enable pupils of all ages to develop an ongoing love for books and reading! If you’d like to help the ABC stock the Reading Chalet, you can drop off your pre-loved books (suitable for 3-11 year olds) at any Acorn, Langford Russell or John Payne office.
“I am so excited about this collaboration it will make a huge difference to our children at Cherry Orchard!” Maria Hill, Headteacher
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