2nd Quarter 2019

Commercial & Development

2nd QUARTER 2019

See page 3...

On page 4...

Reports on nine commercial lettings at an average rent of £49,888pax…

On page 5...

We recently completed the sale of the Former Lamorbey Baths site…

On page 5...

We continue to sell consented development sites at premium prices…

On page 8...

The Acorn Book Club is now a registered charity…

EDITORIAL

It’s certainly been an eventful first half of 2019 (or uneventful depending on how you look at it). As I write this editorial at the end of June we have no Brexit deal, in fact no Brexit date.

We don’t even have a Prime Minister. The retail and manufacturing sectors are suffering, and I think it’s fair to say that consumer confidence is generally pretty low.

On the other hand though, we’re busy. Our 36 estate agency branches are doing well, our property management portfolio continues to grow and we’re completing as many transactions in the Commercial & Development Division as we have done for years. The reality is that life goes on and in our sector, in our area; there is still a lot of life in the market.

On the development front we completed one of our largest ever transactions during the second quarter; a key 53 acre site just off the A2 at Gravesend. Jointly promoted by Bovis Homes & Persimmon Homes over the last 14 years, the site now has full planning permission for 400 homes (see page 3). Not every deal takes 14 years, thankfully, and in the last month alone we’ve exchanged contracts on the sale of three separate investments in a matter of just a few hours.

Jeff East — Director

jeff.east@acorngroup.co.uk

As every quarter goes by there’s no doubt that our share of the local commercial market continues to grow. You’ll note on page 4 of

this Update that we’ve dedicated a full page to commercial lettings. We did many more than nine commercial lettings this quarter, but when reviewing our activities it struck me that the nine listed were all worthy of a little commentary for one reason or another. The average rent across the nine transactions is a smidge under £50,000pax – so these are proper deals.

For us it’s a fairly simple formula at present – we want to work hard for motivated clients. We’ve always been proud of the fact that we’re a purely transactional business – if we don’t do deals, we don’t get paid. It’s a two-way street though, and we’re only able to do deals if we’re working for clients that are keen to transact, and willing to adapt to market conditions. We don’t mind what you’ve got to sell or let, or within reason where it’s located; we just need to know that you’re keen to do a deal, whether that’s buying, renting, letting or selling.

If you’re inspired by any of the reports in this Update, or just looking for some forthright advice from a motivated agent, please telephone me via either of our offices, or drop me a line at jeff.east@acorngroup.co.uk.

Meanwhile, please click on our all new website for news of our latest instructions and most recent deals at acorncommercial.co.uk.

BROMLEY BR1 The High Street is a strange place in almost every town nationwide currently, with vacancies on the up and plenty of top retailers seemingly in trouble.

Whilst this state of affairs is undoubtedly having an impact on the investment market, there are plenty of buyers out there that remain acquisitive.

The calibre of a tenant used to be the main driver behind investment value, but nowadays the sector in which that tenant operates, and the specific pitch of the property are far more critical.

Recession and internet-proof businesses are targeted as occupiers, and top quality positioning is key in case a property comes available.

This property, located at the Southern end of Bromley’s busy pedestrianised zone comprises an A1 unit let to a local charity until 2028, and a large 3 bedroom upper maisonette let on an AST. Despite failing to sell at auction in late 2018, we were confident of locating a buyer. Our sale to a private investor was made comfortably ahead of the auction reserve, and at a blended net yield of 6.7%.

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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@acorngroup.co.uk

GRAVESEND DA11

CURRENTLY FOR SALE...

It took 14 years to secure planning permission for the development of 400 homes on this 53 acre site, and we’ve recently completed the acquisition. It is, however, neither our biggest sale, nor our longest running transaction, but it comes pretty close on both counts…

Tom Luck was 12 years old, riding around on his BMX when he spotted the site and introduced it to Persimmon Homes (okay, I exaggerate a little to make my point). Anyway, it was ages ago. The former farmland was isolated following the diversion of the A2 back in the late 1990’s, and master planning indicated it would become much more accessible as a result of other developments in the immediate vicinity. Nevertheless, securing planning permission for residential development on agricultural land is no walk in the proverbial park, and Persimmon Homes partnered with Bovis Homes early on to promote the site through the local planning process.

Very long story short, outline planning permission was granted in 2017, and the reserved matters were approved late last year.

Persimmon & Bovis will be developing 200 units each, and we understand that Persimmon expect their first occupations in time for Christmas, this year!

Over the last 20 years we’ve managed big deals and small deals.

Some happen in hours, whilst others take decades. No two deals are the same, but in every case the key is to match the seller with the best buyer in order to achieve the most competitive terms. If you have some garden land to sell, or maybe even a field, please contact our offices and we’ll happily advise if we can help turn your molehill into a mountain!

1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454

120 Bermondsey Street, London SE1 3TX 020 7089 6555

GREENWICH SE10 An attractive period building just a short walk from Greenwich Park and the historic town centre.

Comprising a function room, restaurant, 22 hotel rooms and apartment, the property offers a rare opportunity to acquire a freehold building in a world-renowned location, and at a guide of less than £350/sqft.

OIEO £3,500,000 F/H

acorncommercial.co.uk commercial@acorngroup.co.uk

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COMMERCIAL LETTINGS Chloe & Louis have focussed the majority of their time this year on commercial lettings business, and their efforts are undoubtedly paying dividends. We’re not pre-occupied with Zone A rents and complicated terms – just on the real priority – getting a vacant property let.

If you want no-nonsense, current advice from a dynamic, local team please give Chloe or Louis a call.

LONDON BRIDGE SE1 Recently refurbished character offices located just off Tower Bridge Road. This ground floor suite of 1,350sqft was let to a law firm on a 5 year term at an initial rent of £49,000pax (£36/sqft).

WEST NORWOOD SE27

SIDCUP DA14

Good quality business unit close to West Norwood Station comprising 3,000sqft warehousing and 600sqft of offices. Let to Volcano Coffee Works on a long lease at £50,000pax (£14/sqft blended).

Newly built ground floor commercial unit located opposite Waitrose & Travelodge.

Approx 880sqft – we let the unit on behalf of an established client to a beauty therapist at an initial rent of £20,000pax.

NEW ELTHAM E9

GREENWICH SE10

First floor office suite on a popular business estate adjacent to the A20. Well-presented throughout, we let c1,350sqft to an IT firm on a 5 year lease at an initial rent of £35,000pax (£26/sqft).

Approx 6,000sqft of selfcontained warehousing space located close to the O2 Arena and Blackwall Tunnel. Let on a new 5 year FRI lease to a jewellery manufacturer at an initial rent of £95,000pax.

BROMLEY BR1

NORBURY SW16

Prominent double shop unit at the Northern end of the High Street extending to c2,580sqft over ground and basement. Let to a mini-mart operator for 20 years with 5 yearly reviews at £45,000pax.

Two adjacent ground floor commercial units in an attractive converted former Police Station close to Norbury Station. Approx 1,971sqft in all – let to a day nursery chain at an initial rent of £55,000pax.

CAMBERWELL SE5

DALSTON E8

Substantial ground floor shell unit forming part of a modern mixed-use development.

Extending to c6,500sqft, we concluded a letting to a well-known gym operator at £85,000pax.

Lock-up shop unit on the popular Kingsland Road approx. 571sqft. Acting on behalf of a regular client, we completed a letting to a local artist at £15,000pax inside 5 working days!

Chloe Wiseman 020 8315 5454 chloe.wiseman@acorngroup.co.uk

Louis Markham 020 7089 6555 louis.markham@acorngroup.co.uk

SIDCUP DA14 The Lamorbey Baths site has served as a local landmark in Sidcup since the 1960s, when a former cinema was converted to provide a public swimming pool. After over 40 years of service the baths were closed in 2008; replaced by a new leisure centre on Hurst Road. Our clients, Rose Bruford College, acquired the property from Bexley Council in 2012, and had intended to develop a new performing arts facility with student accommodation above.

The opportunity to secure a considerable number of student rooms elsewhere in Sidcup then arose, and funds were invested in the performance space on the existing College campus. The baths site was therefore surplus to requirements.

We provided advice to Rose Bruford on several occasions over the years, and they had also received a number of direct offers to sell the site.

Once the decision was made to pursue a sale, the Governors appointed us to manage the process. We revisited the direct approaches, and simultaneously undertook a high profile, national marketing campaign. A host of offers were received on wide-ranging terms, but ultimately an unconditional sale was concluded to developers Montreaux, who will be promoting a mixed-use development.

BROMLEY BR2 We’re proud of our reputation as the go-to agent for the sale of consented sites. We’ve sold hundreds, probably thousands over the last 20 years, and rely on the expert sales advice of our New Homes Division to help us achieve top land values.

This site on the popular Hayes Lane just South of Bromley has permission for the construction of 9 flats with a GDV of c£3.4M. We promptly traded our client’s position at a land value of £1.39M – more than 40% of the GDV.

BECKENHAM BR3 We were appointed by the executor to manage the sale of these commercial premises in late 2018. Comprising period offices with a large warehouse to the rear, our instructions were to secure an unconditional sale. Whilst offering apparent development potential, the inherent value of the commercial space and relative lack of similar properties available on a freehold basis weren’t lost on us. Sure enough, despite much interest from developers, the property was sold to an investor for continued commercial use.

1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454

120 Bermondsey Street, London SE1 3TX 020 7089 6555

acorncommercial.co.uk commercial@acorngroup.co.uk

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IN A NUTSHELL

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1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454

WEST HAMPSTEAD NW6

ASHFORD TN23

Vacant garage on a plot of just 626sqft, close to West Hampstead Station. Whilst offering apparent development potential, the site had been the subject of more than one failed planning application.

Sold unconditionally at £300,000 – that’s more than £21M per acre!

Development site in Ashford’s busy town centre offered with full planning permission for an attractive scheme comprising 4 mews houses, and a block of 5 apartments. We acted for a private equity house and completed a sale to a Kentbased developer.

ELEPHANT & CASTLE SE17

PLUMSTEAD SE18

An interesting property comprising offices, a yard and railway arches just off the Walworth Road. Offering potential for a variety of uses, we made sure it was widely exposed to the market.

Ultimately sold to a commercial operator at 30% over guide.

This freehold building arranged as two self-contained flats failed to sell in Savills’ May auction. We moved quickly to secure it for a retained client who exchanged the very same day. We’re always looking for similar buildings, larger blocks and portfolios for investors.

CROYDON CR0

BROMLEY BR2

Our database of buyers is so wide that we can turn our hand to the sale of almost any property with potential.

We wouldn’t normally sell a studio flat, but when it has the benefit of consent for extension to form a 2 bedroom unit, it’s very much our bag!

We had more than 30 viewing requests for this freehold building arranged as two self-contained flats. One enterprising punter asked for papers early on the premise of a quick deal; and exchanged contracts less than 8 hours later! The early bird…

FOREST HILL SE23

CROYDON CR0

A quirky freehold building occupying a backland site and comprising 2,300sqft of B1 offices. Our marketing attracted a wide variety of potential buyers including developers, churches and day nurseries, but a sale was ultimately concluded to a charity for office use.

A section of land-locked garden sold on behalf of a Housing Association.

Whilst worthless to most, the land proved valuable to a neighbour who already had permission for the redevelopment of an adjacent plot.

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@acorngroup.co.uk Emma Cramer Team Secretary

Rosie Davis Team Secretary

REPORTS IN NEXT ISSUE SOLD

SOLD

WATERLOO

SOLD

TULSE HILL

SOLD

SIDCUP

SOLD

ELMERS END

DARTFORD

1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454

120 Bermondsey Street, London SE1 3TX 020 7089 6555

SOLD

LEWISHAM

acorncommercial.co.uk commercial@acorngroup.co.uk

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ACORN BOOK CLUB We believe all children should have free access to a wide range of books, and we work with local schools and communities in pursuit of that goal.

The Acorn Book Club (ABC) is a registered charity operated by The Acorn Group. We work with the public, our clients, and our staff to ensure amazing pre-loved children’s books get into the hands of local schools, hospices and organisations who do not have access to funding to purchase them from new.

Have your children grown out of the books they once adored? Do they now sit unused and collecting dust?

Why not donate them to the ABC? Donations can be dropped to any Acorn, Langford Russell or John Payne office within our extensive London and Kent branch network. We then redistribute these books locally, with the aim of promoting a life-long love and passion for reading!

acornbookclub.co.uk

Keep up to date by following:

@acornbookclub Registered Charity Number 1184137.

Visit the new home of property in South East London and Kent.

Our brand new website brings together all The Acorn Group brands, divisions and services under one simple URL. Whatever your property requirement, visit acorngroup.co.uk/about today and see how we can help!