The Update
Second Quarter 2015
Commercial & Development Division
West Norwood The former West Norwood Fire Station is without a doubt one of the most hotly-contested properties we’ve ever sold. Our Development team fielded several hundred enquiries following a national marketing campaign, and the block viewings can only be described as bedlam! It was never in doubt that a buyer would be found for a consented development site in South East London, but just how much could we achieve for our client? Preparation is the key in these matters, and we spent weeks collating surveys, existing and approved plans, committee reports, supporting statements, decision notices, S106 Agreements and even the specifics of the car club scheme. This enabled us to immediately furnish prospective purchasers with everything they might require to appraise the site, and in an
easily navigable format (experienced buyers will appreciate my point). Most importantly though, our marketing pack included a detailed sales & marketing report generated personally by Akin Kara, Director of Acorn New Homes; South London’s largest new homes selling agent. This information is invaluable to buyers, their banks and investors, and helps us ensure we achieve the very best residual land value. So, how did the marketing go? Well, we guided the site at £3.95m, which for 20 private units equates to almost £200,000 per plot. We accepted an offer of £4.5m, and exchanged contracts just 24 hours later. That’s £225,000 per plot, and can only be declared a good result! If you have a development site with a planning consent, it might just be worth a little more than you thought - so get in touch!
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Vacant freehold office building in Walthamstow sold on behalf of Baranardos...
Mixed-use development scheme assembled and pre-sold in East Grinstead...
Mixed-use development in SE1 sold, let and managed by The Acorn Group...
1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
116-118 Bermondsey Street, London Bridge, London SE1 3TX 020 7089 6555
acorncommercial.co.uk
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Editorial I can hardly believe that we’re half way through 2015 already. Time has flown by, as have two Budgets and the General Election, and I’m delighted to report that its business as usual at Acorn HQ. Both the Commercial & Development Division and branch network are performing very well – with the Group on target to hit £20m turnover for the year. In branch business we’re due to open a new Acorn office in Eltham during the third quarter, and have secured an East Greenwich branch for our John Payne network. With several sites in SW postcodes also under offer it won’t be long before we have 30 residential agency offices. Who said High Street agency was dead? As far as Land & New Homes coverage is concerned, we’ve acquired a third office at Bermondsey Street. Our new-look, bigger and better ‘super office’ should be open before the year end, and will offer a comprehensive residential sales, lettings, commercial, investment, development, new homes and property management presence at the Northern point of our agency patch. So, what about the market? Well it’s good, right? If I had 50p for every time I’ve been told “we’re short of stock” I wouldn’t need to give our annual target a second thought. That situation suits our business though, so you won’t hear my team complaining.
Don’t get me wrong, we’re always hungry for more deals, but since we focus on quality, not quantity, a competitive market suits Acorn perfectly. When deals are hard to come by, the value of an effective agent increases immeasurably, and when properties can ‘sell themselves’ (??) a bespoke, all-encompassing marketing campaign is the only way that a seller can be sure they’ve achieved the best possible value. Continuing the quantity and quality theme, we’re on the lookout for more good staff. Commercial, investment & development agents, administrators, new homes negotiators, junior planners and architects – we have vacancies across the Group. If you know of a smart, polite, ambitious and hard-working candidate, please ask them to contact me personally. As always, I hope you find our brief summary of second quarter business interesting, and would welcome any comments, questions or queries you might have.
Jeff East - Director jeff.east@acorn.ltd.uk
Walthamstow This Update contains several examples of the premiums that a tailored marketing campaign can generate, but in percentage terms, the sale of this redundant office building in Walthamstow is the hands-down winner. Acting on behalf of regular clients, Barnardos, our Corporate Asset Services team saw Permitted Development (PD) as the angle to maximise value in this particular case. The client had the 3,226 sq ft of vacant, tired offices listed at a book value around £600,000. I’m sure there’s many a bank valuer that would have struggled to justify even £136/sq ft as being a realistic freehold value, but we saw things differently... Yes the PD window is closing, but in the case of a relatively small building with vacant possession available immediately, April 2016 remains a fair way off. Similarly to West Norwood Fire Station and Doddington School, a diligent approach to the marketing resulted in huge interest. Working closely with our client and its solicitor, a legal pack was readied in advance of the bid deadline. This facilitated a prompt exchange of contracts to ensure the momentum of the marketing didn’t wain. The result? Sold to a local cash buyer at £1,225,000.
1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
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That’s £380/sq ft for tired, vacant B1 space in E17 and with no planning permission or permitted development notice for alternative use in place!
116-118 Bermondsey Street, London Bridge, London SE1 3TX 020 7089 6555
acorncommercial.co.uk
East Grinstead Sadistic as it may sound, we enjoy a complicated land assembly, or co-ordinating several parties in order to facilitate a mixed-use development! Having acquired the former Caffyns VW dealership in East Grinstead for a private client back in 2011, we anchored a major mixed-use development with a pre-letting to Travelodge. Unfortunately, the firm’s subsequent CVA deemed the project unviable. Undeterred, and working closely with BHD Architects, we secured an amended planning consent to include 15,000 sq ft of retail space and 12 residential apartments, in addition to 72 hotel bedrooms. Furthermore, and critical to the delivery of the deal, we negotiated a pre-purchase and funding package with a major investment fund. A new deal at an enhanced room rate was agreed with Travelodge, and the retail space pre-let to Wilkinsons. Our private client has now sold the site to the investment fund but retained the build contract, and will have the full revenue from the residential units to add to it’s land profit.
Woolwich Our development team has successfully concluded the acquisition of an industrial site in Woolwich for a residential developer. The site occupies a key position on the edge of the town centre close to the Berkeley Homes ‘Arsenal Riverside’ development, and new Crossrail station. The site was acquired out of the market, and on an unconditional basis.
Bromley It’s been a busy quarter for our Corporate Asset Services team, and we were delighted to add Sainsbury’s to a long list of recent clients. We’ve acted for Sainsbury’s historically, and were appointed in the Spring to manage the sale of a parade of 6 properties adjacent to their Bromley supermarket. The two houses and four flats were offered in varying states of condition and occupancy, and both as a whole and in individual lots. A joined-up approach utilising the local market expertise of our Langford Russell office in Bromley helped maximise interest, and drive value. A national marketing campaign covered every eventuality, but it was always likely that a local buyer would pay the best price. Acquired as a whole by a local businessman – we understand that the properties will be retained as a long term investment.
1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
116-118 Bermondsey Street, London Bridge, London SE1 3TX 020 7089 6555
acorncommercial.co.uk
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Bermondsey Acorn first began advising the private owners of a redundant warehouse just off Abbey Street back in 2013. The clients had secured planning permission for a new block comprising 8 apartments and a ground floor commercial unit, and our New Homes and Commercial teams provided advice as to the anticipated end values. The owners were reluctant to pursue a straight sale, but equally didn’t wish to undertake the development themselves. Our Development team therefore approached a number of reliable local developers, and agreed a joint venture deal to bring the project forward. The partnership has proven a resounding success, and the Acorn Group has co-ordinated the key elements of the deal including the sale and letting of the new apartments, the letting of the commercial unit and formation of a structure for the ongoing management of the new block. Furthermore, our Commercial Management team has been appointed by the owner to coordinate the management of the commercial leases in the original building, and our residential Property Management team will look after the residential units that have been retained in the new block. The Acorn Group prides itself on serving as a ‘one stop shop’, and its ability to offer clients a truly comprehensive service for anything property related. If you have a development site that may suit a joint venture arrangement, or indeed if you require any property related services in SE1 please contact our offices.
Doddington This redundant former local authority school had most recently been utilised by Langley Park School for Boys as a field centre. The educational origins of the Victorian building and surrounding 2.25 acre grounds can be traced back to 1876, and there is no doubt that the school has been an important asset to the pretty Kentish hamlet of Doddington over the years. Surplus to requirements, our Corporate Asset Services team were appointed by the Trustees of Langley Park school to manage the sale of the freehold interest. We had the property under offer at a figure above the guide inside a month of marketing, and contracts exchanged shortly thereafter. Local residents will be pleased to know that the buyers, a Dubaibased private investment fund, intend to retain the D1 existing use. If your charity or institution has a property to sell or let, please contact our Corporate Asset Services team for free impartial advice.
1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
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116-118 Bermondsey Street, London Bridge, London SE1 3TX 020 7089 6555
acorncommercial.co.uk
Brockley Redundant section of rear garden with access via a rear service road. Sold unconditionally to a local developer with apparent planning potential.
1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
Hither Green Unbroken freehold investment comprising 12 studio flats producing ÂŁ120,000pa; sold to a private investor.
Camberwell
New Cross
Development site sold with consent for a 2 bedroom detached house in a highly sought after Conservation Area, close to Loughborough Junction Station.
Freehold investment comprising a shop and 3 flats; sold to a private investor. Similar properties always required.
Peckham
Wallington
Bread and butter lock-up shop c.900sqft let to a local retailer at ÂŁ11,500pax. Similar instructions always required.
Freehold investment on a popular local parade comprising income from a ground floor commercial unit, and ground rent from the uppers. Sold to a private buyer.
Wandsworth
Catford
Vacant freehold commercial unit in a popular, affluent location close to Earlsfield Station. Sold to an owner-occupier.
Long leasehold, ground floor commercial unit forming part of a landmark modern development. Sold to a local stakeholder.
116-118 Bermondsey Street, London Bridge, London SE1 3TX 020 7089 6555
acorncommercial.co.uk
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Meet Our Team
Tom Luck
Jeff East
Chris Henshall
Emma Fox
Director
Director
Senior Projects Manager
Office Manager
Adam Hosking
Kevin Neun
Projects Manager
Tony Wood
Henry Hammond
Projects Manager
Joshua Beeston
Shaun Timcke
Steve Flannighan
Jess Adams
Projects Co-ordinator
Projects Co-ordinator
Trainee Projects Co-ordinator
Team Secretary
Bromley Head Office 1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454 commercial@acorn.ltd.uk
Projects Manager
Projects Co-ordinator
London Bridge Office 116-118 Bermondsey Street London Bridge, London SE1 3TX 020 7089 6555 acorncommercial.co.uk
@acorncommercial
The Acorn Group, incorporating:
This newsletter has been designed and edited in-house by Acorn’s PR & Marketing Division. Please contact Adam Smith for more information on 020 8315 6959.
acorncommercial.co.uk
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