3rd QUARTER 2020
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Former nightclub sold with planning permission for a modern mixed-use block...
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Attractive period building that backs on to Crystal Palace Park...
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Former vehicle service centre sold for liquidators...
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Portfolio of 17 buildings in New Cross...
EDITORIAL Jeff East — Director
jeff.east@acorngroup.co.uk Six months on and it seems that Covid-19 has left us with a new norm; at least for the foreseeable future. Fewer meetings, a more flexible office and no socials – all likely to continue whilst local lockdowns remain essential to stop the virus spreading again. On the upside we’re a versatile bunch in the property industry, and Zoom, Teams and virtual tours are proving able substitutes for the face-to-face contact that we’d prefer. As far as business is concerned, well, it’s actually been very good throughout the summer period. There are issues in certain sectors, with prime high street retail and larger office lettings the most obvious casualties. Other than that though, demand and values are equally as good, and in many cases better than they were during the first quarter of 2020.
Over the last three months we’ve completed several notable deals including a development site in Beckenham at £3.9m, an HMO in New Cross at £6m, a D1 facility in Croydon at £4.5m and a major mixed-use JV in Vauxhall valued at £25m. It’s not just big stuff though – commercial freeholds and consented sites are selling very well, and we’re still having little trouble finding tenants for secondary retail space and smaller office suites. Planning is moving in the right direction too – with permission granted for a 79 bed hotel in Southwark, and several fresh applications being readied. Institutional clients have been keeping us busy – with third quarter sellers including the Jehovah’s Witnesses, Hyde Housing, Receivers and a Parish Council. Our preference to act for the seller and maximise value via national marketing campaigns makes us an obvious choice for charities and public bodies. We don’t just provide agency services for those clients either – asset and planning management advice is increasingly warranted, and helps us deliver the best possible value.
Across the wider Group it’s been a case of all hands on deck to make the most of the pent-up demand resulting from lockdown. All 36 of our branches are open to the public, and we launched our 37th office in mid-September. We acquired a key building in Strood in early March, with the intention of it serving as a local HQ to aid in our expansion throughout Medway. Light cosmetic works were all that was required to get the huge agency office open, and in time there is plenty of further space to accommodate factions of the New Homes, Financial Services and Commercial & Development teams. With this in mind, if you have any residential stock to sell or let, or a commercial or development opportunity to sell anywhere in the Medway region, please don’t hesitate to contact me personally. Understandably many are nervous of the prospects for 2021. We’re not quite there yet though, and for the next three months we’ll be doing everything we can to finish 2020 with a bang. Stay safe, and keep buying!
BEXLEYHEATH DA6 With Help-to-Buy, the stamp duty holiday and pent-up demand still driving the market hard, consented development sites continue to prove a hot commodity. The owners of this former nightclub in central Bexleyheath had decided to close long before the Coronavirus outbreak, and we recommended an architect, and provided some consultancy advice during the planning process. Planning permission was granted for a smart modern block comprising a restaurant over ground and lower ground floors, with 10 new apartments above. Our client’s original intention was to develop the site themselves, but nevertheless, we were happy to get the call that they’d prefer to sell. An open marketing campaign was planned, but after speaking to several obvious local buyers we had a variety of offers to consider. A straightforward cash deal was agreed with an experienced local firm, and the sale was completed with little fuss.
CGI
We’re still very keen for more consented sites, so if you have a development opportunity to sell please get in touch with one of our offices.
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1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
2 North Street, Strood, Kent ME2 4SH 01634 969678
back in 2015. We subsequently bought a fifth lease, and secured an option over the final apartment. We took over the management of the block and various tenancies, and set about ensuring the investment was compliant both legally, and physically.
Our Planning Management team quickly secured permission for the construction of 60% more accommodation in an additional floor. Using the consented height and local context as precedent, we then made an application for a high density, comprehensive scheme over 5 stories. Whilst that application was refused, the process resulted in clear guidance as to what form of development would be acceptable.
A further application for 24 apartments across two blocks was made, and approved at local level. Furthermore, we were able to successfully argue against making an Affordable Housing provision, so that all 24 units could be offered for private sale.
BECKENHAM BR3 The property industry has become much more complex over the last decade, and we’ve expanded our range of services to move with the times. Planning and property management require particular expertise; two areas in which we excel. We acquired the freehold, and four of the leasehold interests in this under-developed residential block for a private investment vehicle
The site occupies a prominent corner, right in the very heart of our agency patch. With that in mind, and given our long-standing involvement with the project, we were keen to see it delivered to a high standard. Rather than undertake a wide-reaching marketing campaign, we approached a small handful of reputable firms with a good track record locally. Terms were agreed with Shanly Homes, and the sale completed in late summer. Further information on our Planning Management, and Equity & Asset Management services is available on our website acorncommercial.co.uk.
PENGE SE20 What a truly lovely building! The nature of our work means that we’re ultimately responsible for the demolition of lots of old properties, but that certainly doesn’t stop us from appreciating a nice one when we see it. This stunning period detached building backs on to Crystal Palace Park and retains the vast majority of its original character, at least externally. Internally it’s a different matter; with a particularly uninspiring institutional conversion undertaken when the building was put into C2 use. We were instructed to arrange a quick sale on behalf of Hyde Housing. Vacant, and with a failed application for conversion to four residential apartments, Hyde had a self-imposed deadline by which to realise the cash value of the property. Our huge database of buyers rarely fails to deliver, and we were able to generate multiple offers within just a few days. Terms were agreed with a cash buyer comfortably ahead of our guide, and contracts successfully exchanged within a week. This project is one that we can’t wait to visit once it’s finished.
120 Bermondsey Street, London SE1 3TX 020 7089 6555
acorncommercial.co.uk commercial@acorngroup.co.uk @acorncommercial
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Sites with planning permission for new houses are few and far between; even more so in the London suburbs.
HALSTEAD TN14
This particular site forms part of Fort Halstead – a Government defence and research facility. Currently undergoing decommissioning, the wider site has planning permission for 450 residential units, 300,000sqft of commercial space, a hotel and community centre. Our clients acquired the existing staff housing and ancillary accommodation several years ago, and have undertaken a piecemeal break-up programme. The former officer’s mess, tennis court and changing rooms were unsuitable for continued or alternative use, and as such planning permission was secured for nine new 3 & 4 bedroom houses.
Despite our marketing taking place during the deepest of the Government lockdowns, we were able to generate several competitive offers for the site. Terms were agreed with a private house builder, contracts exchanged expeditiously and the matter completed in August 2020.
LEWISHAM SE13
This former vehicle service centre is the third property that we’ve sold for liquidators managing the dissolution of a former franchised Vauxhall dealership business.
Extending to c.15,000sqft, and prominently positioned on the A20, the property was offered for sale with full planning permission for the construction of a new 5 storey building comprising ground floor commercial space and 17 apartments.
The combination of national advertising and an extensive database enabled us to generate lots of interest, and competition was particularly strong between three short-listed bidders. Contracts were exchanged with a private developer within a few weeks, and at a figure comfortably ahead of client expectations.
We’ve sold 5 development sites in central Lewisham in the last 12 months, and urgently require other similar opportunities. We have the sales intelligence and track record to be able to accurately predict and justify GDVs, and with a long list of buyers to hand, will maximise the value of your land as no other can. Please contact us for expert disposal advice.
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1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
2 North Street, Strood, Kent ME2 4SH 01634 969678
NEW CROSS SE14
In the vast majority of cases we act for the seller. We’re true estate agents, and pride ourselves on generating the best possible deal for the seller or landlord. On occasion though, we’re asked to introduce a buyer.
This property comprises the freehold interests to 17 buildings on New Cross Road. The ground floor commercial units had been sold off, and the upper parts converted to provide 114 letting rooms along with 15 kitchens, 28 bathrooms and 22 WCs!
Let for many years to Goldsmith’s University, when notice was given the owners decided to sell rather than explore the potential themselves. With investment stock proving so popular at present, we were confident that the property would go well in the open market. The seller was reluctant though, given that a deed of surrender had to be negotiated with the outgoing tenant. Furthermore this particular chap had a firm figure in mind, so we happily introduced a cash buyer. Contracts were exchanged at £6m within a couple of weeks, and completion even took place early. I wonder why the buyers were so keen to get their hands on the property – maybe they think they’d have paid a chunk more if they’d have been forced to compete in the open market!?
ADDINGTON CR0 We regularly act for charities and faith groups, and have sold countless premises with D1 use over the last 20 years. The recent sale of Pioneer Place in Addington though, has to rank as one of our largest single D1 transactions.
Extending to 4.8 acres, the site includes a number of buildings arranged as meeting halls, two apartments and totals approx. 15,500sqft of existing accommodation. Several derelict buildings add a further 6,500sqft, and there is parking for around 60 vehicles. Set in the Green Belt, and with a covenant restricting the use to a place of worship, it was only ever going to be sold to a faith group.
120 Bermondsey Street, London SE1 3TX 020 7089 6555
Acting on behalf of the Jehovah’s Witnesses, our national marketing campaign generated considerable interest from factions of many different religions. Fortunately we were able to conduct most viewings before the Coronavirus outbreak, and whilst faith and community groups were unable to meet, their interest in securing such a key site remained strong regardless. Offers in excess of £3.5m were invited for the vacant freehold interest, and more than a dozen bids were received. Terms were agreed with a local Muslim community group almost 30% ahead of the guide, and completion of their purchase took place in September 2020. Our expertise in the sale of premises with D1 use is second to none. If your group has a surplus property to sell, please contact us for a free appraisal.
acorncommercial.co.uk commercial@acorngroup.co.uk @acorncommercial
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IN A NUTSHELL
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SOUTH CROYDON CR0
EAST DULWICH SE22
Freehold site in South Croydon with full planning permission for 8 new flats. Sold to a local developer for £1,050,000; this type of deal is quite simply our bread and butter!
Prominent double commercial unit close to East Dulwich Station. Let to a day nursery operator on new FRI terms at £56,000pax. Landlords, retail lives – call us for help!
EAST SHEEN SW14
EAST DULWICH SE22
Unbroken, mixed-use freehold investment. Café with two smart 1 bedroom flats above. Fully let producing £46,600pax; the investment was sold at a blended 5.6% NIY.
Mixed-use freehold on popular parade comprising retail unit and two upper floors. Requiring modernisation and sub-division, the vacant property was sold for £450,000.
PURLEY CR8
BROMLEY BR1
Prominent, unbroken mixed-use freehold with active management potential. Shop and two 1 bedroom flats. Fully let producing £33,400pax – sold at 5.7% NIY.
Who said that the high street was dead!? Prime retail letting completed in the pedestrianised high street. Approx. 1,150sqft plus ancillary space let on FRI terms at £45,000pax.
UPPER NORWOOD SE19
FOREST HILL SE23
Small retail unit approx. 285sqft on the quieter side of the popular ‘Crystal Palace Triangle’. Let to Affinity Brew Co on FRI terms at £12,000pax – reflecting over £40/sqft.
Double retail unit just off the A205 approx. 550sqft, let on a new FRI lease for 7 years at £13,300pax. Max & Sophie have recently opened an artisan deli and grocery store.
1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
2 North Street, Strood, Kent ME2 4SH 01634 969678
MEET THE TEAM
Jeff East Director
Tom Luck Director
Lily Whitby Senior Secretary
Steven Flannighan Commercial & Development Agency
Louis Markham Commercial & Investment Agency
Jamie Stevenson Commercial & Development Agency
Rosie Davis Team Secretary
Izaak Thomas Commercial Agency
Could This Be You? If you are interested in joining our team, please send your CV to lily.whitby@acorngroup.co.uk. Adam Miles Commercial & Development Agency
Kevin Nartey Commercial Agency
REPORTS IN NEXT ISSUE SOLD
SOLD ANERLEY
BERMONDSEY
SOLD
SOLD
GREENWICH
NORBURY
120 Bermondsey Street, London SE1 3TX 020 7089 6555
SOLD DEPTFORD
SOLD
SUTTON-AT-HONE SIDCUP
acorncommercial.co.uk commercial@acorngroup.co.uk @acorncommercial
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Nuts About MEDWAy
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