Acorn Commercial – The Update Q2 2022

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The Update Quarter 2 2022

acorncommercial.co.uk

commercial@acorngroup.co.uk

acorncommercial.co.uk

@acorncommercial

In a nutshell

Quarter 2 2022 It’s strange to think that we’re more than halfway through another year already. Time certainly flies when you’re having fun (or getting old)!

The second quarter of 2022 saw another successful period of trading for both the Commercial & Development Division, and the wider Group. In our corner of the business it was particularly gratifying to generate strong premiums for several private clients who are not seasoned property professionals. The sales in Chingford (p3), Eltham (p4), Lewisham (p5) and Sidcup (p6) are transactions that won’t simply go onto a spreadsheet and be forgotten in a few years, but will really make a difference to the individuals and families involved. It reminds us that whilst property is the commodity, our industry is about the people, not just their assets.

Internally we’ve talked a lot about marketing in recent months. No doubt many of you will have noticed that the £6.95 weekly Estates Gazette is rarely 70 pages nowadays. It used to be the ‘go-to’ publication for property nationwide, but that was then. Various portals have since gobbled up the advertising budgets of many agents, but in our experience they generate very little in the way of enquiries. So how do we run effective marketing campaigns that consistently enable us to generate premium values? There’s no secret really. We have a huge, retained database of buyers, tenants and professional contacts built up over more than 20 years. Most of our enquiries come from that c17,000 strong database. Next on the list of most effective marketing tools is our own website (acorncommercial.co.uk), followed by our boards. In fact, paid-for portals and print advertising combined doesn’t even account for 5% of our enquiries!

There isn’t really a moral to the story, but I guess it proves that there’s no substitute for experience, application and a strong track record.

With that in mind we’re very keen for fresh instructions to carry into the second half of the year. Rumours and predictions about market conditions persist, but currently figures across the Group remain particularly strong.

If you have a property to sell, or indeed to let anywhere across the South East please do get in touch. We have 40 residential branches, and two professional offices dedicated to commercial, investment, development and new homes business. If you’ve not dealt with us before, we’re a friendly bunch, and I can promise you’ll receive forthright advice from someone who truly knows their stuff.

Erith DA8 Freehold investment comprising E class unit and rear storage underlet at £15,500 pax, and upper apartment sold off with just 62 years unexpired. Guided at £250,000, sold off market from one private investor to another.

Sydenham SE26 Modern E class space arranged over ground and first floors and extending to approx. 3,700 sqft.

Adjacent to lower Sydenham Station, the suite was let on a new effective FRI lease to a martial arts studio at £47,000 pax.

Jeff East — ­ Director

Jeff.east@acorngroup.co.uk

Bromley BR2 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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Large 3 bedroom garden apartment in recently refurbished building.

Whilst offered on a new 125 year lease, the property is subject to a regulated tenancy producing £9,660 pa. We secured a sale to a private investor at £319,000.

Chingford E4 ‘The Brambles’ is a well-known property locally. It sits on the main Chingford Mount Road, and as the last of what would have been a parade of grand Victorian villas, it stands out from the range of architectural styles that have evolved around its half acre plot.

The property had been in single family ownership for more than 90 years, during which time it was used both as a family home and flower nursery.

The old greenhouses have long-since become overgrown, and by the time we were instructed the house had suffered significant structural damage, and a small fire.

The Brambles offers obvious potential for residential redevelopment and a range of other uses, and our clients were keen to maximise the value of the property. They were, however, also conscious that the structural integrity and fire damage were both a cause for concern if the property were left vacant for the life of a planning application. With that in mind, our instructions were to arrange an unconditional sale.

The strength of our retained database again showed itself, with more than 100 specific enquiries resulting from our e-shots and speculative phone calls.

acorncommercial.co.uk

Half a dozen block viewings were held; each attended by at least 10 interested parties. We were forced to hold three rounds of bidding in order to arrive at a shortlist, and even then, there was hot competition.

This enabled us to carry the momentum of the marketing into the conveyancing process when a deal was reached with a local community group. The sale was completed promptly, and we look forward to seeing how The Brambles will be put to use for the next phase of its life.

commercial@acorngroup.co.uk

@acorncommercial

New Eltham SE9 Despite the recent rise in interest rates, income-producing investments continue to prove popular as yields remain considerably higher than even long-term savings rates. This virtual freehold commercial unit was set up by our client’s husband as a small business centre, but on his passing the management proved a little too much, and we were instructed to arrange a sale.

Being well-located and with a constant waiting list of potential tenants, we had no trouble finding a buyer willing to pay a premium a little over the £1M guide price.

Having completed the sale of this property we’ve since been instructed to manage two other units on the same popular estate!

Thornton Heath CR7

Having suffered two abortive sales via another agent over a 24 month period, the owner of this redundant warehouse was recommended to us by a local solicitor.

Whilst offering apparent development potential we were conscious of potential overlooking, access and policy issues; all of which could impact on the scope and financial viability of any proposal. Given that the 4

building is c10,000sqft and perfectly habitable, we were also confident that it would prove popular with owner-occupiers for continued use.

That ultimately proved to be the case and we concluded an unconditional sale to a private educational operator at a figure higher than our predecessor had hoped to achieve on a conditional basis.

In a nutshell

Camberwell SE5 Mixed-use freehold comprising ground floor A5 unit & 3 bedroom apartment. The flat needs refurbishment and was provided with VP, whilst the shop was subject to a leaseback at £16,000 pax. Sold to an investor for £550,000.

Lewisham SE13

This property is another example of how we employ a wide marketing campaign to ensure that the best possible price is achieved. The detached building is in good order throughout, benefits from double road frontage and is conveniently positioned on the outskirts of Lewisham. Originally a family home, but offered for sale as a vacant HMO, the property also offered apparent residential development potential. Competitive offers were in fact received for all three purposes, and from several surgery operators. A neighbouring property with arguably greater potential sold for £1.1M in a recent off-market transaction, and therefore our clients were delighted to complete the unconditional sale of this property at £1.3M.

Penge SE20 Former neighbourhood Police Station arranged over three floors and offered with PD for conversion into 3 self-contained apartments. Having sold the property more than 10 years ago to the client, we successfully sold it again to a local developer.

East Dulwich SE22 Orpington BR6 Open-plan, ground floor commercial unit forming part of a town centre mixed-use development completed by Berkeley Homes. Measuring c1,765sqft and offered in shell and core, we sold the virtual freehold to a local dance academy.

Despite rising build and borrowing costs, residential development sites continue to prove popular, and particularly those in quality, sustainable locations. This rather non-descript parcel of backland is just a hundred yards or so from East Dulwich Station and has planning permission for the construction of a block of four new apartments. Sales values are strong in the area, and our local branch expects a GDV a little over £2M. We were able to generate several offers from local developers, and promptly concluded a sale of the vacant freehold interest at £825,000.

We’re always keen to speak to anyone with a consented development site to sell, so please get in touch if that’s you!

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In a nutshell

Sidcup DA14

Greenwich SE10

The strategic potential of this relatively small, vacant industrial site was recognised by a major pension fund when we took it to market in late Spring. Extending to just 0.17 acres and with a building no bigger than 1,500sqft, the vacant site occupies a prominent position at the gateway to a major industrial zone that is likely to see considerable redevelopment in the medium term.

Mixed-use freehold comprising shop and yard previously used for tyre sales and fitting, and a 2 bedroom flat in the uppers.

In need of refurbishment throughout, a host of offers were received resulting in a prompt sale at £415,000.

For those that might assume residential is by far the most valuable use class, we achieved £1.9M for this property, which equates to an incredible £11M/acre! If you happen to own an industrial site in a London borough and are thinking of selling, please get in touch!

Bexleyheath DA6 Brand new ground floor commercial unit forming part of a contemporary development on Bexleyheath’s ‘high street’.

Approx 3,523sqft, the unit was offered in shell and core and sold to a local operator for £840,000.

Sidcup DA15

We’re selling more mixed-use freeholds than anything else at present, and they continue to prove popular with owner-occupiers and investors alike. Debt for shops with residential upper parts seems to have dried-up a little, but that hasn’t impacted on appetite in the market.

This tidy investment close to Sidcup Station comprised a vacant E class unit on the ground floor, with two small 1 bedroom flats above.

The flats were underlet, and potential appeared to exist for extension to the rear. Several offers were received; and the property ultimately sold to a local cash buyer for £550,000. Again, we’re keen to hear from anyone with a similar property to sell.

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Greenwich SE10 Modern ground floor commercial unit approx. 1,000sqft, owned and occupied by a baking school.

Believe it or not we managed to find another cookery school willing to buy the long leasehold as seen!

Meet the Team

Jamie Stevenson

Louis Markham

Steven Flannighan

Rosie Davis

Daniel Dennis

Adam Miles

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

Administrators and deal-makers wanted!

If you are interested in joining our team, please contact Jeff East on

Jeff East Director

020 8315 5454

Tom Luck Director

Reports in the next issue...

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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

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