Quarter 1 2024

Quarter

If even half the properties that we appraised during the first quarter of 2024 come to the market we’re going to be in for a bumper year.

There’s a firm prediction from the Bank of England that interest rates will drop in 2024, and the general chat in Cannes, the industry’s annual gathering was that the second half of the year will be busy.

In the meantime the team has been working hard to conclude deals across a wide range of properties, several of which are reported in this Update.

We’re very keen for fresh stock so if you’re a landlord with a vacant property, or a motivated seller of a building, block, investment or development site please get in touch with one of our offices, or indeed contact me personally.

Jeff East — Director Jeff.east@acorngroup.co.uk

Swanley BR8

Mixed-use freeholds are proving to be our bread and butter at present with each one that we market attracting strong interest from a variety of buyers. This property comprises a generous retail unit, warehouse and office to the rear with a 3 bedroom flat on each of the upper floors, and was offered for sale on behalf of the long-term owners.

Offering angles for investors, developers and owneroccupiers our marketing campaign generated numerous viewings, and several offers. The successful buyers are a local building contractors who intend to occupy part of the commercial space themselves, and retain the rest of the property for income.

Peckham SE15

We approached the owner of this property given its obvious development potential, and coincidently he was about to agree to sell to his tenant at what we believed was considerably less than market value.

We suggested marketing the property on the basis the tenant would be offered last-refusal. The marketing unearthed interest from a local family with a host of other assets on the street, and the tenant didn’t get close to matching their bid. The moral of the story is that a good agent really does make a difference!

Lewisham SE13

Our preference is always to openly market any property to ensure that the very best price is forthcoming. Occasionally though, a seller might prefer that marketing is more exclusive, or that we introduce a retained client.

In this case the sellers were willing to part with their unbroken block of 10 flats, but only at a certain price. We couldn’t openly market, but were able to canvas our extensive database generically.

This led to several offers, a deal being agreed with overseas investors and a prompt completion in early 2024. The block in question was fully let on ASTs producing £201,000 pa. The sale price was £3M; reflecting a NIY of 6.34%.

In a nutshell

Islington N7

The best buyer for any property is a neighbour, or someone with a vested interest in that particular property. That doesn’t mean that we’ll agree a deal without going through the proper process though – in fact quite the opposite.

We knew the neighbour wanted this building before we went to the market, but that marketing helped drive the price. With several credible bids from third parties in hand we were able to drive a hard bargain on behalf of our client, and ultimately achieved a considerable premium as a result.

Greenwich SE10

You’ve already heard that mixed-use freeholds are proving particularly popular, and that was certainly this case with this property on the sought-after Trafalgar Road.

Comprising a vacant E class unit (on completion) c600sqft with an ERV of £18,000pax, and a generous three bedroom flat in the uppers let as an HMO at £2,200pcm, we had no trouble in generating early interest.

Terms were agreed with a reliable buyer known to us, and contracts were exchanged promptly. We’ll be offering the shop to let in due course.

Greenwich SE10

This attractive building is set in the very heart of historic Greenwich and was offered for sale multi-let as small office suites. The property also has the benefit of planning permission for conversion into a 17 room boutique hotel, and appears to offer potential for conversion to residential units.

The interest that our marketing generated was understandably varied, but ultimately terms were agreed with a private investor who in time, will complete the conversion works to a hotel.

Freeholds are required across our operating area for all manner of purposes, so if you’re thinking of selling please get in touch with one of our offices.

Footscray DA15

A prominent freehold investment positioned on the edge of the Footscray business estate. Comprising over 7,000sqft of industrial and office space let to two tenants at a total rent of £82,500pax, we concluded a sale to a local private investor at £1.3M – a NIY of 6%.

Despite the current cost of commercial debt industrial space is still selling at competitive yields. Demand from owneroccupiers and the emergence of businesses including dark kitchens and last mile delivery seem to be fuelling demand and values.

Featuring in the next issue...

Carshalton SM3

Whilst national planning policy doesn’t promote the development of micro units, we find that they play a vital role at the bottom end of the rental market, and there’s never any shortage of demand from tenants or indeed investors.

This period building is arranged as five self-contained, but very small units. Unsuitable for mortgage purposes if offered piecemeal, we nevertheless had no trouble introducing an investor happy to take income over the long term. The five flats generate £45,000pa and we concluded a sale at £610,000.

Keston BR2

Small to medium sized office suites continue to prove popular in the suburbs. We’re seeing Covid startups moving out of home offices, and bigger regional businesses taking smaller hubs that prove more convenient for local staff.

We’ve managed the lettings at Leonard Place since it was developed and recently moved two businesses into vacant space. An educational business took a suite at £50,000pax, and we persuaded our clients to vacate their own offices in return for £22,000pax in order to accommodate a local business displaced by a rogue landlord.

Meet the Team

Regional Manager

Adam Miles

Commercial & Development Agent

Tom Luck

Jamie Stevenson Director

Senior Commercial & Development Agent

Daniel Dennis Office Manager

Thembiza Amone

Team Assistant

Jeff East

Director

Rosie Davis

Louis Markham

Senior Commercial & Development Agent

Finn Robertson

Commercial & Development Agent

Steven Flannighan

Senior Commercial & Development Agent

Blaise Ribbons

Team Assistant

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Acorn Commercial’s experience and knowledge of the market and process is outstanding. I would highly recommend using them.

Mr T Nicolaou

Acorn Commercial’s expertise and market outreach is first class and as a direct result our property was sold within a short period of time.

Mr B Foreman

Acorn commercial were extremely professional and gave honest advice. Our property sale went through quickly and smoothly. Great service.

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