Land & Commercial 3rd Quarter Newsletter

Commercial & Development

3rd QUARTER 2019

See Page 3...

On page 2...

Detached bungalow sold at a considerable premium over market value…

On page 5...

Prominent triple shop with upper parts sold for the retiring owners…

On page 6...

Former neighbourhood police station very wellreceived in the market…

On page 8...

The Acorn Book Club goes from strength to strength…

EDITORIAL

Jeff East — Director

jeff.east@acorngroup.co.uk

In honesty I struggled to think of a theme for this quarter’s editorial. There’s only so many times I can bring myself to point out that “interest rates remain consistently low”, and “Brexit is clearly on everyone’s minds”; and I think I’ve done those lines to death!

generate interest. We use that interest to create competition, and that competition ensures that as a seller or landlord, you get the best price. Yes, we act for buyers on occasion, but far more often than not we’re representing the seller, and we’re driven to maximise value on our clients’ behalf.

An impromptu chat with Louis Markham (in our London Bridge office) encouraged me to revisit our very purpose. Louis has worked with us for 4 years now and I was keen to gauge his opinion of current market conditions. Louis might not have the experience of several market cycles, but he’s on the coalface working tirelessly to do business in the current ‘climate’.

Generating interest is only one part of the challenge though, and at a time when the conveyancing process seems to be taking three times as long as it really should, a decent agent will fight to maintain the momentum built during marketing through the life of a deal.

I asked what he thought had changed over the last couple of years, and Louis told me that he feels the service he provides to our clients is more important now than ever before. He doesn’t see himself as a broker trying to create an angle and earn a fee, but a true orchestrator of the business he conducts. He knows how to achieve the very best premium for the very best opportunities, and equally how to grind out the letting or sale of a property that might not be so hotly contested.

So as agents, what is our purpose? Well the very fact that you’re reading this editorial proves that we generate interest. It doesn’t matter whether we advertise a property, circulate its availability around our database, list it online or post it on Instagram or Twitter; regardless, we

In conclusion, has anything really changed in recent years? Well in our opinion, yes. Whilst we’re still achieving strong values, and for the most part we’re not struggling to get instructions sold, doing deals is undoubtedly more challenging. All the more reason for you to engage the services of a decent agent! Now there are some very fine agents out there, but given that you’re still reading our latest Update, why not give one of our offices a call!?... … And please remember that we’re not just one of the South East’s leading commercial and development agents; we also have 35 residential branches, a specialist New Homes sales division, one of the largest PRS teams in the UK and more than 5,000 residential properties under full management for private landlords. Please visit www.acorngroup.co.uk for more information.

SIDCUP DA14

We made contact with the owners of this detached bungalow in autumn 2018, but at that time they weren’t ready to sell.

We highlighted the likely development potential, and our confidence in achieving a premium price.

We were delighted to be contacted in the spring of this year with instructions to manage the sale on an unconditional basis. Our marketing generated huge interest, with more than 50 interested parties attending the various open viewings.

Nine offers in excess of the guide price were received, and a sale was ultimately concluded at £703,000. Put into context, several local residential agents had all valued the property at £525,000 — £575,000; so our clients were understandably delighted…

“We received great advice about the sale options, followed by superb support throughout the sale process with the knowledge and negotiation skills to achieve the best sale price.

Acorn were not the cheapest but achieved a significantly better sale price than other agents were suggesting possible.

We would have no hesitation in using again or recommending to others”. Praise indeed!

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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

LEWISHAM SE13

CURRENTLY FOR SALE...

We’re regularly questioned about the state of the market, and how Brexit has affected development land values. Whilst interest levels in consented sites aren’t so strong, and the purchaser profile has shifted away from purely speculative developers, the bottom line (as in the ultimate land value), hasn’t really changed over the last 36 months or so.

Good sites, with good consents that are marketed aggressively are still achieving premium prices. A ‘good site’ depends on size, location and accessibility, and a ‘good consent’ is driven by efficient unit sizes, simplicity of construction and Help To Buy qualification. Aggressive marketing requires an experienced and motivated agent; and that is where we come into play.

This former factory site has been put to many uses over the years including a dairy, cycle component plant and more recently by a food manufacturer. In longstanding family ownership, once it became vacant renowned local architects Alan Camp were employed to promote the site for mixed-use redevelopment. Full planning permission was granted in early 2019 for a new block comprising ground and lower ground floor offices, with 21 apartments above.

Our role was to ensure that the best possible price was achieved for the property, and as such we undertook a wide-reaching marketing campaign with national advertising placed, and particulars circulated throughout our extensive database of pre-registered applicants.

Several premium offers were received, and terms agreed with a private, residential-led developer.

Deal or no deal, we’ll always be the go-to agent if you have a consented development site to sell!

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

120 Bermondsey Street, London SE1 3TX 020 7089 6555

BLACKHEATH SE3 An unparalleled opportunity to acquire one of the largest plots on Blackheath’s highly sought-after Cator Estate. More than 12,000sqft of existing C2 accommodation across attractive, locally listed period buildings on a south-facing plot in excess of 1.25acres. Potential for a variety of uses including residential and institutional subject to the necessary consents.

OIEO £6,000,000 F/H

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

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COMMERCIAL LETTINGS

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

CAMBERWELL SE5

CATFORD SE6

Large ground floor commercial unit approx. 6,500sqft. Having secured change of use to D2, the property was let to Pure Gym for 15 years at £85,000pax.

Lock-up shop in the busy pedestrianised Broadway. Lots of interest was shown by a variety of operators. Ultimately let to a credit union at £13,750pax.

LEWISHAM SE13

BROMLEY BR1

Approx 3,750sqft of new ground floor D1 commercial space in a mixed-use scheme. Let to a subsidiary of BUPA for 10 years at £70,000pax.

Compass House offers good quality office space on all-inclusive terms. We never struggle for interest, and recently let 1,000sqft on the 3rd floor at £22,000pax.

PLUMSTEAD SE18

NORBURY SW16

Double retail unit on a popular secondary parade. Approx 1,200sqft; let on a new lease to a mini-market operator at £25,000pax.

Two adjacent commercial units newly formed in this converted police station. Let with D1 use on a new lease to a day nursery operator at £55,000pax.

120 Bermondsey Street, London SE1 3TX 020 7089 6555

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

SIDCUP DA14 We sell a wide variety of properties for a multitude of different purposes, and as such we’re able to closely follow market trends.

With interest rates remaining low, and continued speculation concerning the possible impact of Brexit, an increasing number of investors seem attracted to the security offered by existing stock. Office buildings, shops with upper parts and all manner of commercial freeholds are selling well across the South East, and we simply can’t get enough instructions to satisfy demand.

This triple shop unit with uppers operated until recently as a cycle shop. It is well-located close to Sidcup Station, has a large rear garden and appears to offer potential for extension and conversion. Acting for two adjoining owners, our instructions were to secure an unconditional sale at the best possible price.

Our marketing generated huge interest, and we’d received offers in excess of the guide within just a few days! Having hosted several block viewings and vetted a number of potential purchasers, terms were agreed with a local private investor. Contracts were exchanged promptly at a premium price, and completion took place in August 2019.

We understand the buyer proposes to extend and convert the upper parts to residential, and refurbish and re-let the commercial space.

DULWICH SE22 Similarly to Sidcup above, the sale of this commercial freehold on Lordship Lane was hotly contested. Arranged over four floors, the property comprises 2,250sqft of retail and office space. We invited offers in excess of £775,000 for the vacant freehold, and were inundated with calls. Discussions were held with a number of potential buyers, and terms ultimately agreed with a cash investor. The sale completed quickly at £850,000 leaving us with a very happy seller, but a number of disappointed buyers. If you have a similar property to sell please get in touch!

DARTFORD DA1 This industrial investment occupies a third of an acre in a prominent position on the outskirts of Dartford. Comprising over 8,000sqft of B2/B8 space and a 10,000sqft yard, the property is let to several tenants (including Europcar) producing c£80,000pax.

Buyers with a range of different motivations showed interest in the property. Whilst development in the longer term appears a distinct possibility, the top bidder was attracted by the investment credential. A sale was concluded in the summer of 2019 at £1,225,000; reflecting a NIY of 6.2%.

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

HERNE HILL SE24

BROMLEY BR1

Single storey commercial investment with A5 use sold to a local investor. Let at £15,000pax until 2019, the long leasehold interest with 58 years unexpired achieved a NIY of 8.9%.

Freehold investment at the Northern end of the High Street comprising a vacant retail unit, and the ground rent income from an upper flat. Sold for £230,000 to a private investor.

WATERLOO SE1

BECKENHAM BR3

Vacant freehold shop and upper part on Lower Marsh; close to London Waterloo Station. Acquired off-market from one private family trust for another at £978,000.

Single storey former banking hall most recently used as a Police Station. Sold with full vacant possession to a cash buyer at more than 15% ahead of the guide.

BRENTWOOD CM15

TULSE HILL SE24

Well-presented HMO comprising 6 letting rooms, and producing £59,400pa.

HMO’s are back in fashion, and with NIY’s of 9.3% from a residential investment it’s hardly surprising!

Attractive period building arranged as 5 flats, albeit without planning permission.

Acquired part-vacant on behalf of a longstanding client for refurbishment and future break-up.

PLUMSTEAD SE18

CROYDON CR0

Cute, two storey freehold building with A2 use located on a popular secondary parade. Little more than 500sqft in all, but perfect for the owner-occupier to whom it was sold.

Freehold site with consent for 9 new apartments and a GDV of c£3.1M. We were able to sell our client’s contractual position to avoid SDLT and maximise profit.

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 Rosie Davis Team Secretary

Freya McKeogh Projects Assistant

REPORTS IN NEXT ISSUE SOLD

SOLD

GREENWICH

SOLD

DULWICH

SOLD

BROMLEY

LET

CHISWICK

BERMONDSEY

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

120 Bermondsey Street, London SE1 3TX 020 7089 6555

SOLD

HERNE HILL

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

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!