Update 1st Quarter 2018

THE UPDATE See page 5

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Our development team was appointed to sell this consented site in Croydon...

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Substantial mixed-use property on Old Kent Road sold...

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Contracts exchanged inside a week on a consented development site in Lingfield...

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1 Sherman Road, Bromley, Bermondsey Kent revealed BR1 3JH as London’s 020 most8315 desirable 5454 place to live...

120 Bermondsey Street, London SE1 3TX 020 7089 6555

acorncommercial.co.uk commercial@acorn.ltd.uk

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EDITORIAL

Jeff East - Director jeff.east@acorn.ltd.uk

In March 2017 a solicitor contacted us asking if we could assist a client of his.

The client had exchanged contracts to sell a site by way of an option, but the buyer had failed to proceed. We quickly completed an appraisal of the property, which appeared ideal for the development of a small apartment block.

We introduced a buyer to exchange an option on terms familiar to the seller, and secured a non-refundable deposit of 5% of the agreed price.

The buyer retained our services to promote the potential of the site, and we engaged ECE Architecture to design a contemporary apartment block. We held a pre-application meeting with Croydon Council within a fortnight of exchange, and made a full planning application for 9 flats just four weeks later.

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MORE LIKE THIS...

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The property industry has long been aware of the political pressures that often affect perfectly good (and compliant) applications, but in some boroughs it appears that budget problems leave the planning departments unable to offer any meaningful engagement with applicants, particularly on smaller projects. Nevertheless, we have some exciting schemes in planning including 30 flats in Bromley, 55 flats in Croydon and a major mixed-use project comprising a 19 storey tower on the Old Kent Road.

In team news we’ve recently recruited Rosie Davis following the promotion of Emma Fox into a wider Group role. Lily now takes charge of office management, with Emma Cramer very much fulfilling the role of ‘boss’ at London Bridge! The first quarter has already seen the Group open two new residential branches, in Plumstead High Street and Plumstead Common; taking the network to 30 offices. We’ve also signed leases in Blackfen, Sidcup & Swanley, and hope to have those three offices open before the year is out.

Our development leads come from a variety of sources, but increasingly nowadays they stem from the good name we’ve established over the last 25 years.

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In this regard you’ll read over the following pages about two small sites in Croydon & Lingfield that were both sold at very strong premiums in the first couple of weeks of the New Year. If you have a site with a consent but are unsure whether to sell or build, I urge you to get in touch - you might just be surprised at what that site could be worth.

On the Commercial agency front we continue to experience strong demand for lock-up shops, small offices and industrial units. Commercial freeholds are also particularly sought-after, both by owneroccupiers and investors. There’s no doubt that the lower end of the commercial market would benefit from a little streamlining in terms of the legal process, but its sufficiently strong that we’re actively looking to expand our commercial teams in both Bromley and London Bridge. Again, please get in touch if you have a commercial property or investment that you wish to dispose of, or if you know of anyone seeking a new challenge in commercial property.

The application was approved under delegated powers inside the statutory period, which meant we’d delivered a full planning permission just 16 weeks after receiving the solicitor’s first call!

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The planning process continually proves the biggest challenge to ourselves and many of our clients, and is undoubtedly one of the major reasons that we’re able to achieve such strong premiums for development land with a consent in place. Each Local Authority seems to have its own foibles, and whilst most hurdles can be overcome, considerable time, effort and money has to be invested. Gone are the days of a ‘straightforward application’, hence why small and medium sized developers are willing to compete so hard for a decent site with a ticket.

We also have new hotel deals agreed in Lewisham & Southwark.

An inevitable rise in interest rates will keep matters interesting as the year progresses, but all in all we’re expecting 2018 to be a good one. We wish you every success for the current year and beyond, and would be delighted to hear from you if we can be of any assistance.

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The first quarter has seen an encouraging, if a little subdued start to 2018. Whilst we’ve enjoyed some notable successes and have a strong pipeline of business for the next 6 months or so, the quarter hasn’t been without its frustrations.

CROYDON CR0

Our buyer had intended to offset an Affordable Housing provision from a larger project elsewhere, but unfortunately that application didn’t move quite as quickly. We therefore took the site to the market and promptly agreed terms at a healthy premium. Our client’s option was assigned in just over a week, and pre-construction work is already underway on site.

PECKHAM SE15 Substantial existing property with lapsed planning consent for the development of 38 apartments.

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LEWISHAM SE13

Clearly there was a happy ending to the story, but had the ultimate seller engaged our services directly rather than asking us to introduce a buyer, he would have benefitted from the full premium that our client enjoyed from the deal. We’d always prefer to act for the seller in any deal, after all, our role is to add value, so who better than on behalf of the seller?

We secured planning permission for the redevelopment of the old Acorn Group head offices on Lewisham High Street (now demolished) before selling the site to Skillcrown Homes.

We’ve subsequently acted for Skillcrown in the unconditional acquisition of the adjacent TFC supermarket site on the corner of Morley Road. Whilst the supermarket doesn’t occupy a particularly big plot, its corner position creates an extra dimension to the development potential of the wider site.

CRYSTAL PALACE SE19 Consented development site with planning permission for 5 new aparments.

We already have an appeal pending against the refusal of an eight storey scheme comprising 52 units, so watch this space...

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

120 Bermondsey Street, London SE1 3TX 020 7089 6555

acorncommercial.co.uk commercial@acorn.ltd.uk

Existing Site

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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@acorn.ltd.uk

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OLD KENT ROAD SE1 During the final quarter of 2017 our investment team based in London Bridge was appointed to manage the marketing and sale of this mixed-use property on Old Kent Road, SE1 on behalf of a private family trust.

Well-located in the heart of one of London’s well known and historic thoroughfares, the subject property comprises two ground floor retail units with 8 flats above; all fully let.

We set about a high profile marketing campaign which highlighted the secure income, as well as the scale of regeneration planned for Old Kent Road; which will only serve to ensure long term growth for the area.

Our wide marketing reach ensured that we had no shortage of interest, and having generated a host of offers, we successfully sold the property for £2,500,000 to local buyers. This figure reflects a net initial yield of just 4.51%, and resulted in a very happy client!

As always we would be delighted to hear from any property owners who require expert, no-nonsense advice on how best to maximise the value of any property asset.

LOUGHBOROUGH JUNCTION SE24 Our Planning Management team was engaged by the private owner of this industrial estate to handle its promotion for development. The site sits in Loughborough Junction, and forms part of a wider master plan zone. Working with Alan Camp Architects and GVA Planning Consultants we conceived a scheme for 9,000 sqft of employment space (replacing the existing commercial space) with 21 flats above.

We consulted the Loughborough Junction Action Group (LJAG), held public consultations and three pre-application meetings. Following positive pre-application feedback from Lambeth we were about to submit a planning application, when we received an offer from a party who recently purchased the adjacent site. Lambeth were keen to see the two sites developed comprehensively as outlined in their masterplan. The offer received was close to the value of the site with a planning consent, but was not subject to planning permission. It did, however, require us to agree a deal with one of the tenants to enable vacant possession when required. We agreed a restructure of the lease in question, and subsequently concluded the sale of the site. In summary, an unconditional sale at full consented value, but without the need for a planning application!

CHISLEHURST BR7

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There’s simply no let-up in the demand for consented development sites, and it came as no surprise to us that this attractive scheme in the heart of Lingfield’s pretty village was hotly contested.

The team always relishes an instruction to sell a freehold property. Our longstanding reputation has been based on our ability to achieve premium prices for development sites, but we think we’re equally as good at selling commercial freeholds!

Set behind the quaint retail parade, a former sausage factory (the second one we’ve sold!?) will make way for a sympathetic development of just 5 two storey houses. Seemingly rare nowadays, these are new houses of orthodox design, and even have parking and proper gardens!

This attractive period property on Chislehurst’s highly sought-after Royal Parade gave us the perfect opportunity to show off to a new client.

Extending to approx 2,843sqft and arranged to provide A1 retail space with a residential unit to the rear, the property hadn’t seen the market for over 40 years. Vacant possession was offered, along with a change of use to A3 (restaurant).

I won’t explain the marketing process because in truth there wasn’t one. We didn’t get the chance! The draft particulars were released to a handful of likely buyers that had been in regular contact reminding us of their requirement, and a knock-out offer was received within just a couple of days.

High quality imagery was used on our particulars; which in turn were circulated throughout our database of more than 10,000 applicants.

Considerable interest was generated, and block viewings held to accommodate demand. Ultimately the property was sold to a local restauranteur for £1.4m - more than £300,000 over the guide.

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

120 Bermondsey Street, London SE1 3TX 020 7089 6555

LINGFIELD RH7

Contracts were exchanged at more than 40% of the GDV inside a week, and completion took place less than a month later.

If you have a development site to sell we’ll guarantee to get you a premium price - its quite simply what we do!

acorncommercial.co.uk commercial@acorn.ltd.uk

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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@acorn.ltd.uk

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IN A NUTSHELL

OUR HOTSPOT BERMONDSEY

NEW CROSS SE14

ORPINGTON BR5

Newly built retail unit located in a prominent position on New Cross Road. Let to a busy e-cig retailer for £14,500pax.

Mixed-use, newly refurbished freehold building with vacant possession provided on completion; sold to a local investor.

ELTHAM SE9

KESTON BR2

Many of our friends and clients regularly drop into our Renaissance Works offices on Bermondsey Street for a ‘posh’ coffee (or something stronger) . If you’re passing, why not pop in for a chat? Our expert team could even help move your home or offices to SE1!!

London Bridge Office 116-118 Bermondsey Street, London SE1 3TX 020 7089 6565 londonbridge@acorn.ltd.uk

Newly refurbished A4 unit located on the ground floor of a four storey mixed-use property off Eltham High Street. Let to a micro-pub user at £20,000pax.

Secure underground parking/storage measuring c. 3,250 sqft let to a national furniture retailer.

HITHER GREEN SE13

SYDENHAM SE26

Unbroken freehold building comprising 3 self-contained flats in need of refurbishment. Sold on behalf of a registered charity to a property investment company.

Vacant freehold backland site close to Sydenham Station. Sold on an unconditional basis with apparent potential for a new detached house (stpp).

FOREST HILL SE23

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Freehold development site with full planning permission for a substantial mock-Victorian villa. Sold on behalf of a private client to a local developer.

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

Bermondsey has been revealed by the Sunday Times Best Places to Live Guide 2018 as London’s most desirable place to set up home! This is undoubtedly due to Bermondsey’s convenient location close to the Thames and the City, and the trendy vibe offered by the wide array of bars, restaurants, shops and galleries. We’ve long had offices on Bermondsey Street and clearly see the appeal!

120 Bermondsey Street, London SE1 3TX 020 7089 6555

NEW ELTHAM SE9

KESTON BR2

Substantial detached office complex in a popular semi-rural location sold with the benefit of Prior Approval for conversion into 16 self-contained apartments.

acorncommercial.co.uk commercial@acorn.ltd.uk

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This prominent corner building opposite New Eltham Station operated as a Greek taverna for many years.

In preparation for his retirement, the owner secured planning permission for the conversion of the upper parts to form 3 two bedroom flats.

Our instructions were to undertake the marketing and sale of the vacant freehold, but with completion to take place after the busy Christmas period – one last hurrah!

Our marketing attracted considerable interest, with the best offer received from a successful local publican. A deal was agreed subject to a change of use from A3 (restaurant) to A4 (public house), which was forthcoming in late 2017.

The restaurant was closed early in the New Year, and the sale successfully completed in January 2018.

If you’re planning your retirement or the relocation of your business, we’ll tailor our advice to suit your individual circumstances. Give us a call!

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

120 Bermondsey Street, London SE1 3TX 020 7089 6555

acorncommercial.co.uk commercial@acorn.ltd.uk

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MEET THE TEAM

Adam Hosking Associate

Emma Fox Operations Manager

Jeff East Director

Tom Luck Director

Tony Wood Projects Manager

Steven Flannighan Projects Co-ordinator

Louis Markham Projects Assistant

Jamie Stevenson Projects Assistant

Could This Be You? If you are interested in joining our team, please send your CV to lily.whitby@acorn.ltd.uk

Lily Whitby Senior Secretary

Emma Cramer Team Secretary

Rosie Davis Team Secretary

WE’VE GOT PLUMSTEAD COVERED! Whether you’re looking to buy, sell, rent or let in SE18, pop in to one of our two BRAND NEW offices on either Plumstead High Street or Plumstead Common for a free valuation, or expert property advice!

James Clow is Area Manager for the new offices. As a veteran of 22 years on the company, you can be assured of the full Acorn service from James! Our new Plumstead offices take the network of branches to 30, but watch this space...

@acorncommercial

Plumstead Common 140 Plumstead Common, Plumstead, London SE18 2UL

Plumstead High Street 105 Plumstead High Street, Plumstead, London SE18 1SB

020 3861 0000 plumstead@acorn.ltd.uk

020 3861 0111 plumstead@acorn.ltd.uk

acorncommercial.co.uk

commercial@acorn.ltd.uk