Update 2nd Quarter 2017

Attractive Victorian former schoolhouse sold in 5 days! See page 3...

T H E U P DAT E

2 ND QUARTER 2017

INSIDE THIS ISSUE

On page 2

On page 3

On page 7

Consented development site sold in South Croydon…

Unbroken commercial parade in Fulham sold for £4.25 million, and exchanged in just 8 hours!...

Our PRS Division met with London Mayor Sadiq Khan to launch the first London Living Rent Scheme…

EDITORIAL In March I reported that we’d returned our best first quarter ever, and I’m delighted to confirm that we enjoyed an even stronger second period. The March - June results now leave us comfortably ahead of a target that in January I thought was a touch ambitious.

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

Our results over the last 3 months were underpinned by the completion of several large deals including an unbroken commercial parade in Fulham at £4.25 million, a site with consent for 34 units in Bermondsey at £6.1 million and four other transactions between £2-4 million.

Consented development sites, parades and portfolios continue to provide the majority of our interest and income, but I anticipate that our PRS, BTR and Planning Management work will ultimately play a bigger part in our 2017 numbers than they did last year. We’re managing applications for more than 300 residential units at present. The majority of these sites will be sold in the open market, but several are earmarked for retention. It is likely that our Asset & Equity Management team will be expanded to manage the construction work, before passing the finished blocks to our PRS team (which already has a managed portfolio in excess of 5,000 units).

Following the Brexit vote, Trump’s win stateside, and Macron’s shock victory in France I don’t think any of us anticipated a straightforward result in our 3rd General Election in six years. At the time of writing our second successive Prime Minister has just pulled together a minority Government, whilst simultaneously trying to hold the country together in the face of terror attacks and terrible disasters.

Nevertheless, I don’t see the Conservative/DUP coalition proving anywhere near as controversial and unhappy as the farcical arrangement of 2010, and regardless of which political party controls the nation for the next 4 years, the reality is that we probably need to generate more money (taxes) and spend it more wisely to better educate, care for, secure and support our population.

The property market will continue to play a major role in the economy, and therefore it should remain business as usual. We still have a strong pipeline of business to manage out over the next 6 months, some exciting instructions on the horizon and hopefully a few planning consents coming our way, so roll on the summer!

In wider Group news we recently relocated our Sydenham branch to a larger premises opposite the Station. We’ve also acquired the former Barclays Bank in Blackfen, and to complement our Welling, Bexleyheath and Dartford offices, have several other new branch sites in lawyer’s hands.

Across the board, the company remains committed to providing a comprehensive service to the highest of standards to both professional and private clients alike. We continue to reinvest heavily in our offering, and will always seek to set trends and make the market, not follow it.

I usually finish my editorial in a similar fashion, but that’s simply because nothing changes - we’re always keen to hear from motivated sellers and landlords who seek a professional agent to do a proper job on their behalf. If you fit that bill, please don’t hesitate to contact me personally.

CROYDON CR2 We’ve long held a reputation for achieving premium prices for consented development sites, and are regularly contacted by new clients aware of our strong track record.

We were instructed by a private developer very active in Croydon to dispose of this site adjacent to South Croydon Station. Our clients had secured a great consent for a very smart scheme, and that certainly aided in our efforts to achieve a strong price.

The site has permission for the construction of 7 apartments, and with more than 11,000 applicants on our database we were confident of generating sufficient interest without the need for a national marketing campaign.

A deal was ultimately concluded with a private development company based in South West London at almost £160,000/plot. Whilst known to us, we’d never sold to them before so the deal put us in touch with two new firms (to us) that we’re highly likely to do more business within the future. Success all round!

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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PECKHAM SE15 A private developer client acquired this attractive Victorian former schoolhouse unconditionally from the NHS, and successfully secured planning permission for its extension and conversion to form 8 residential apartments.

Following a thorough valuation exercise, our development team was appointed to manage the sale of the property. In parallel with our national marketing campaign we worked closely with our client’s lawyers in preparing a full legal pack.

Our advertisements, circulars and historic database generated considerable interest, and each of the block viewings was very well attended. A host of offers were received, and the legal pack enabled us to exchange contracts in just 5 days.

FULHAM SW6 There’s absolutely no doubt that this parade of shops in Fulham is one of the most hotly contested properties that we’ve sold in recent years.

In fact we didn’t even get the chance to advertise the property, such was the interest generated from our database and the acorncommercial.co.uk website.

The parade comprises a terrace of 11 small shops with ancillary

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

Completion was deferred until vacant possession could be provided, and successfully took place in April 2017. Our clients were delighted to achieve £300,000 more than the guide - a sale price that reflects 51% of the GDV.

commercial upper parts. Only 7 of the units were let, with the other 4 vacant and requiring refurbishment. At the point of sale the parade was producing £102,250pa, and we invited offers in excess of £3.75 million for the freehold interest.

We very quickly received several offers in excess of £4 million, and accepted a bid of £4.25 million on the basis of a 24 hour exchange. At our request the seller’s solicitor had prepared a full legal pack pending a sale, which enabled the buyers to exchange unconditional contracts in just 8 hours!

Completion took place in early June 2017, and clearly we’d be delighted to hear from you if you have a similar property to sell!!

120 Bermondsey Street, London SE1 3TX 020 7089 6555

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

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Our development team acquired a pair of redundant filling stations in Southwark on behalf of a private client back in 2014.

Planning consents were forthcoming on both sites in 2016 for a total of 68 residential units and new commercial space.

During the planning process for this particular site, an Area Action Plan for the wider Old Kent Road area was mooted by Southwark Council. Shortly after our clients secured permission for 34 units, the draft Old Kent Road Area Action Plan (OKRAAP) was published. Our site sits in a ‘core area’, and the OKRAAP suggests that with high quality design, a far higher density might prove appropriate.

Having committed to the construction of the other site acquired at the same time, our clients took the decision to sell the Bermondsey property.

BERMONDSEY SE1 We employed a typically high profile marketing campaign quoting a guide of £5.5 million for the 34 plots (including 8 affordable units). We succeeded in generating considerable interest, and received 9 offers ahead of the guide; including several over £6 million. Terms were agreed with a student housing developer, and contracts were exchanged inside 3 weeks. Completion occurred in June 2017.

The final sale price was 11% ahead of the guide, and represents a private plot rate of over £234,000. We have a long list of buyers keen to acquire development sites of all sizes across London.

KENNINGTON SE11 We’ve been selling commercial properties, investments and development opportunities for over 20 years, and as such we’re perfectly placed to advise landowners of when and how best to dispose of an asset.

In this particular instance, our clients were retiring and had a financial target in mind, but also within a specific timeframe.

Their property sat in an area master-planned for development.

Whilst this underpinned a likely value much higher than for continued commercial use, the property only formed a small part of the allocated site.

A sale subject to planning permission may well have been achieved at a higher price, but the extent of the development potential was unclear, and was likely to take some time to crystalise. With this in mind, we set about a national marketing campaign on an unconditional basis. Interest was strong, and

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

there must be some inherent potential given that Lambeth Council proved to be the best bidder! The Council promptly completed its purchase, and our clients were delighted with the closure that the sale brought about.

120 Bermondsey Street, London SE1 3TX 020 7089 6555

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

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IN A NUTSHELL WESTGATE-ON-SEA CT8

SIDCUP DA14 Freehold development site with full planning permission for a new block comprising 5 apartments. Sold to a private residential developer at almost £140,000 per plot.

Detached 5 bedroom property with sea glimpses, sold to private owner occupiers after we had secured C2 to C3 change of use. Our client was Barnardo’s.

NEW CROSS SE14

BROMLEY BR1

Freehold lock-up shop and upper parts with planning permission for conversion.

Sold in just 2 days to a large local stakeholder with an eye on long term redevelopment.

Derelict freehold Grade II Listed period gatehouse in generous grounds. Sold to a local developer with the benefit of planning permission to form a 2 bedroom house.

CGI

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

CATFORD SE6

BERMONDSEY SE1

Freehold lock-up shop with 2 bedroom self-contained apartment across the upper two floors. Sold with full vacant possession and in need of refurbishment to a local investor.

Freehold industrial unit located in the Core Area of the Old Kent Road Area Action Plan. Sold on behalf of a private client to a Registered Provider with other assets locally.

NEW ELTHAM SE9

BECKENHAM BR3

Detached office building extending to approximately 2,500 sqft and benefiting from ample parking. Located just a stone’s throw from the A20, the property was let to an electrical contractors.

Lock-up shop in a popular secondary parade on the outskirts of Beckenham, let on behalf of a private landlord for use as a hair salon. Similar instructions always required.

120 Bermondsey Street, London SE1 3TX 020 7089 6555

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

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STAFF FOCUS: LILY WHITBY Lily joined Acorn’s Commercial and Development Division in 2015 after graduating from university with a degree in Digital Film. Lily forms part of our office management team, and along with Emma Cramer ensures the Division runs as smoothly as possible. Lily also works closely with our in-house PR team to coordinate the marketing of the business and its many instructions.

If you have a property to sell or let contact us today for free, forthright property advice acorncommercial.co.uk

Favourite restaurant?

Luciano’s in Lee SE12.

Favourite TV series?

Grimm or American Horror Story.

Cats or Dogs?

Dogs, I’ve never had cats!

Most visited holiday destination?

Cyprus or Florida.

Number one on your travel bucket list?

Costa Rica.

What’s the strangest thing you’ve ever eaten?

I’d eat anything, but a scorpion was the strangest.

One thing you would never give up?

Cheese, I can’t live without it!

Interesting fact about yourself?

I’m an identical twin. lily.whitby@acorn.ltd.uk 020 8315 5454

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

NEW SYDENHAM OFFICE Our commercial team acquired this unit for The Acorn Group to facilitate the relocation of our Sydenham office.

If you’re ever in the area feel free to pop in to The Orb, 278-280 Kirkdale, Sydenham SE26 4RS and see what we’ve done with the place! If you have a residential property to sell or let in the Sydenham area please call 020 8776 7070.

120 Bermondsey Street, London SE1 3TX 020 7089 6555

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

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MEETING THE MAYOR OF LONDON At £22.5 million, County House in Beckenham was the largest sale we made in 2016. This quarter Acorn’s PRS Division had the pleasure of meeting London Mayor Sadiq Khan at the official opening.

All 76 homes have been made available by new owners Hyde for The Mayor’s London Living Rent Scheme (LLR). This is the first LLR scheme to go live, and is in place to help middle-income earners save for a deposit. Rents in the County House development are up to 30% cheaper than local market rents, and are based on one-third of median gross household income for Bromley.

Acorn was delighted to be retained by Hyde to launch and manage this scheme, and meeting The Mayor of London was a pleasure too!

If you are a corporate or institutional landlord and require sales, acquisition or management advice, please get in touch.

GBCH MINI MARATHON This quarter we’ve been busy as usual organising and sponsoring events.

Our John Payne brand sponsored The Greenwich & Bexley Community Hospice Mini Marathon for a third year running.

More than 1,000 young runners aged between 5-16 and their families gathered at Greenwich Park to help raise money for the local hospice. Fortunately the weather was kind once again and as always our branded canvas shopping

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

120 Bermondsey Street, London SE1 3TX 020 7089 6555

bags were a hit! Various members of staff from The Acorn Group manned water stations and marshalled the 2.62 mile route, with goodie bags awarded to all participants upon completion of the course!

It was a fantastic day for all who took part, and as always for a very important and worthy cause. Keep up to date on twitter @johnpayne.

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

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OUR TEAM

Adam Hosking Associate

Emma Fox Operations Manager

Jeff East Director

Tom Luck Director

Kyle Peters New Business Manager

Tony Wood Projects Manager

Henry Hammond Projects Manager

Steven Flannighan Projects Co-ordinator

Andrew Tilbrook Projects Co-ordinator

Louis Markham Projects Assistant

Lily Whitby Team Secretary

Emma Cramer Team Secretary

OTHER NEWS IN BRIEF...

Office building in Beckenham – contracts exchanged at £4.05m…Former Police Station in Norbury with consent for 22 units – contracts exchanged at £3.4m… Former nursing home in St Leonards – under offer at £1.5m+…Mixed-use freehold in Penge – under offer at £875,000…Development site in Peckham – under offer at £14m+…Development site in Herne Hill – under offer at £1.6m+…Industrial unit in Kennington – under offer at £1.4m…Industrial unit in Dulwich – under offer at £2.0m+…

Conditional development site in Bromley – under offer at £2m+…

@acorncommercial

acorncommercial.co.uk

commercial@acorn.ltd.uk