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The Update Quarter 1 2022
acorncommercial.co.uk
commercial@acorngroup.co.uk
acorncommercial.co.uk
@acorncommercial
In a nutshell
Quarter 1 2022 Now that we’re learning to live with Covid-19 it’s probably a fair time to reflect on the fallout in our sector of industry, and in truth, we’ve faired very well when compared to many others. Admittedly factions of the market have suffered including High Street retail and prime offices, but in the main activity levels and values are comfortably higher than they were pre-pandemic. Whilst the Ukraine war hasn’t yet had any effect on the UK property market, we’re beginning to see some wider impact with high fuel costs, and increasingly limited availability of some products and materials. Rising inflation and interest rates are doing little to slow progress currently, and at the time of writing Nationwide has just announced the highest annual increase in house prices (14.3%) for 17 years. Across the Acorn branch network sales numbers are even higher now than they were during the final throws of the Stamp Duty holiday. Who knows what will transpire later in the year, but in the meantime it seems there is plenty of business to be done. The Commercial & Development Division has enjoyed a solid start to the year, and after the great success of 2021 the pipeline is being replenished at a rate of knots. Buyers are discerning, so sellers need to be realistic, but those that heed advice are seeing their stock move at fair value, and remarkably quickly.
Gillingham ME7 Redundant former nightclub in central location with consent for 14 new flats above a large commercial unit. Our Medway development team generated numerous offers, and a sale was concluded at £575,000.
You’ll note over the following pages that we’ve completed a wide variety of transactions at all price points over the last three months. We’ve also been busy expanding the team, and are pleased to welcome Callum & Tudor to the fold. In Group news we’ll be opening our 40th residential branch in early May; expanding the network reach to the popular market town of Sevenoaks. We’re also trying to buy one or two businesses similar to our own, so watch this space… As always, we’re very keen to hear from motivated sellers and landlords looking to instruct a hardworking agent to do a proper job. Likewise, if you have a particular desire to buy or rent a property in the coming months, please get in touch with one of our offices. Meanwhile I hope you enjoy our latest Update, and wish you a safe, healthy and prosperous 2022.
Sidcup DA14 We promoted this vacant back land plot through the planning process, and secured permission for a new detached 4 bedroom house. With a GDV of c£900k, we were able to achieve £365,000 for the delighted seller.
Jeff East — Director
Jeff.east@acorngroup.co.uk
Peckham SE15 Bromley Office
London Office
9 St Mark’s Road, Bromley, Kent BR2 9HG
120 Bermondsey Street, London Bridge, London SE1 3TX
020 8315 5454
020 7089 6555
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Vacant former nursery occupying a prime plot on Rye Lane in the heart of Peckham. Extending to c3,500sqft predominantly over a single storey, the property was sold to a developer unconditionally for £1.25M.
Blackheath SE3 The Gables represented a truly unique opportunity in one of South London’s most sought-after private estates; comprising more than 12,000sqft GIA across 1.25 acres. We acted as sole agents to the NHS South East London Clinical Commissioning Group (CCG), who had let the property to a care provider fulfilling a Government contract. With the contract at an end and the buildings no longer fit for purpose, The Gables was earmarked for disposal with the proceeds to be recycled into other important social care projects.
Whilst the property was to be sold vacant and on an unconditional basis, a variety of factors made the process challenging: The first round of viewings were undertaken with patients still in residence, and the second during a national lockdown. Guardians frustrated the last viewings, but we succeeded in generating several unconditional offers ahead of the £5M guide. The legal process was further compromised by Cator Estate covenants and a Department of Health
acorncommercial.co.uk
restriction, but contracts were ultimately exchanged in 2021. A lengthy completion period was agreed to enable our clients to procure vacant possession, and the matter completed in January 2022. This property was the jewel in the CCG’s crown, and we were proud to manage the sale on their behalf. We regularly act for a variety of public bodies, and would be happy to assist any others with asset management or disposal services.
commercial@acorngroup.co.uk
@acorncommercial
Sidcup DA14
Freehold buildings with prior approval for extension and/or conversion continue to prove a hot commodity, and we’ve enjoyed a strong run of similar such sales recently.
This former office building close to Sidcup’s busy town centre was acquired on an unconditional basis. Prior approvals were secured for the conversion of the existing building into 13 apartments, and the construction of two additional floors comprising a further 8 units; so 21 flats in all. The property proved very popular in the market, and we were able to report strong offers to the sellers in less than a week. A sale was promptly agreed with a cash buyer, and successfully exchanged contracts at over £2.5M just a fortnight later.
Wallington SM3
The majority of our work is undertaken as agents for sellers, but on occasion we act for the buyer. Time is money, so acquisition work is only undertaken when we really fancy our chances of success! In this case we acted for the owners of Hamseys Sleep Centres – one of the tenants in a substantial freehold building on Stafford Road. We completed 4
appraisal work, managed the bid process, and worked closely with our clients’ solicitor during the conveyance. Following successful completion at £1.62M, we advised on surrender terms with the other commercial tenant - Brandon Tool Hire. Please get in touch if you need assistance with a similar acquisition.
In a nutshell
Greenwich SE10 Freehold business unit on a popular estate close to Greenwich Station. Approx 5,500sqft of mainly offices over two floors, with the benefit of 6 parking spaces. Sold to a fashion company for £1.2M for their own occupation.
Brixton SW9
A prominent site that had been identified by overseas investors as ideal for a tall building. Despite there being consent for a 16 storey building and an application for 29 stories both within 100 yards, Lambeth had far more conservative ideas for our clients’ property. Ultimately consent was granted for just c6,000sqft of E class space and 8 flats. Offering nothing like the volume that our clients had originally anticipated, the decision was taken to sell. Sites with consents for entirely new-build apartment schemes are relatively straightforward, this, however, was a different matter. Anyway, we like a challenge, and managed to conclude a deal promptly. The buyers are likely to try and improve the planning position, and with any luck they’ll catch Lambeth on a good day!!?
Dagenham RM8 Unbroken freehold investment on busy parade comprising vacant shop c1,100sqft, and generous two bedroom flat currently under-let. Total ERV c£30,000pa; the property was sold to an investor for £410,000.
Sevenoaks TN13
Another major land acquisition was completed by Purelake New Homes during the first quarter of 2022.
New Eltham SE9 Smart suite of first floor offices close to the Five Ways junction on the A20. Approx 1,350sqft and benefitting from private parking, the property was let to a surveying practice on a new 5 year FRI lease at £24,000pax.
The redundant former Tesco supermarket site in central Sevenoaks has planning permission for the construction of 10,000sqft of High Street retail space and 104 new apartments. Sold on an ‘off market’ basis by a private investment company, our development team provided essential appraisal advice relating to the GDV and Section 106 Agreement, and assisted with the preparation of a competitive tender. This is the third major site we’ve transacted with Purelake in the last 6 months; adding well over 200 residential units to their pipeline. If you’re on the lookout for a site and need some expert assistance please get in touch. 5
In a nutshell
Croydon CR0
We’re often contacted by sellers who, having agreed a sale via other means, suddenly have second thoughts. “Am I getting the best deal?” Our client secured permission for the redevelopment of his property, and a sale had been agreed directly to a developer who then stalled. We were confident there was no reason for a buyer to delay, encouraged the sellers to withdraw from the sale and let us go to market.
Plumstead SE18 Freehold investment comprising vacant E class unit c950sqft, and upper maisonette sold off on a long lease. With an ERV of £20,000pax interest in the property was strong, and we concluded a sale at £265,000.
Our advice was that whilst there is value in the consent, the existing building could well be worth more than the residual land value generated by the consent. We were able to quickly agree a sale at a premium price, and contracts were exchanged in just 8 days. Ultimately our client achieved £50,000 more than he’d previously agreed, and that’s after paying our fee!
Sydenham SE26 Freehold investment comprising a split-level E class unit c760sqft and ground rent income. The commercial unit appears to offer C3 potential, and there is reversionary value in the upper lease. Sold for £235,000.
Welling DA16
This town centre site would have been a straightforward deal had we been offering the vacant freehold interest. Instead, we were asked to sell an option to purchase the property by a client who’d had his planning application for the redevelopment of the site refused! Ever eager to please, we contacted several local developers we suspected might be confident of overcoming the planning challenges. We were able to find a buyer who moved quickly and paid a premium to take an assignment of the option. We enjoy a challenge, so get in touch if you have a complicated scenario that needs unravelling! 6
Croydon CR0 Prominent building fronting the A23 Purley Way and comprising a vacant commercial unit with small upper flat. Offering potential for improvement and break-up, it was sold to a private investor for £292,000.
Meet the Team
Jamie Stevenson
Louis Markham
Steven Flannighan
Rosie Davis
Adam Miles
Daniel Dennis
Tudor Raileanu
Callum Reeves
Commercial & Investment Agency
Commercial & Development Agency
Commercial & Investment Agency
Commercial & Development Agency
Commercial & Development Agency
Senior Secretary
Commercial & Development Agency
Commercial & Development Agency Could This Be You? If you are interested in joining our team, please contact Jeff East on
Lily Whitby
Senior Secretary
Jeff East
020 8315 5454
Tom Luck
Director
Director
Reports in the next issue... M CA
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commercial@acorngroup.co.uk
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@acorncommercial
Our new Langford Russell Sevenoaks office is opening on 9th May 2022, and will be our 40th branch across London & Kent!
We’re keen for lettings and sales instructions, both for residential and commercial properties. Get in touch for a limited-time fee offer! 68b High Street, Sevenoaks TN13 1JR
01732 443 333 | langfordrussell.co.uk
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Bromley Office
London Office
9 St Mark’s Road, Bromley, Kent BR2 9HG
120 Bermondsey Street, London Bridge, London SE1 3TX
020 8315 5454
020 7089 6555