Beckenham landmark sold See page 3...
T H E U P DAT E
3 RD QUARTER 2017
INSIDE THIS ISSUE
On page 2
On page 4
On page 7
Mixed-use development site sold on London Road in Norbury...
Our planning management team has been busy - read more inside...
Have you seen Adam on the back of your local bus?...
EDITORIAL Over the last three months the ‘state’ of the market has been the hot topic. Given that as a Group we sell around 300 residential units every month, we’re used to developers and investors seeking our counsel. Whilst our sales teams are working hard to maintain volume, there’s no doubt that power has shifted from the seller to the buyer. Regardless of their ultimate purpose, the modern buyer is discerning and over-priced properties simply won’t sell.
Jeff East - Director jeff.east@acorn.ltd.uk
The GDV’s adopted in development appraisals six months ago are going to be tough to achieve, and developers can’t expect sales values to compensate for increasing Council levies and construction costs. The planning bottleneck and overall housing shortage will ensure that land and development opportunities will remain sought after, but expert sales advice and marketing presence will be required if landowners are to continue achieving premiums. The sheer scale of our operation and the close link between the component parts of our business leaves us perfectly placed to provide detailed upto-the-minute evidence, market analysis and advice to both sellers and buyers, and our marketing process takes some beating. Away from development, the commercial market continues to thrive. Office, retail and industrial space is in high demand from upcoming and established businesses, and investors will happily
accept low yields to secure trophy freeholds. Looking into the final quarter of 2017 and towards 2018, I see traditional property assets becoming even more popular: Portfolios, office buildings, shops with uppers – good old fashioned bricks & mortar with income. Interest rates are forecast to increase, the residential market is somewhat unpredictable and the banks are likely to revel in the fallout from both, but solid property assets will always provide an income, and appreciate over the longer term. In wider Group news we remain committed to growing our traditional agency offering, and see an online presence as nothing more than a welcome marketing tool. As our competitors contract, we continue to expand and have acquired new agency sites in Swanley, Plumstead High Street, Plumstead Common and Blackfen in recent months. We also have sites in two other key locations in the South East quarter firmly under offer. The new branches will be rolled out steadily, but by the end of 2018 our branch network will total 35 sites; making us one of the largest truly independent agents in the UK. I trust our latest ‘Update’ proves interesting reading and urge you to get in touch if you’re keen to do some business before the festive break!
NORBURY SW16 We’ve sold several redundant police stations over the years – the most recent being this fine building on London Road in Norbury. Owned by a private investment company, the property was offered for sale with planning permission for the conversion of the main period building, and construction of a new apartment block to the rear. The approval allows for a total of 22 apartments with some ground floor commercial space. A high profile marketing campaign was undertaken, and offers were received from a wide variety of potential purchasers. A sale was ultimately concluded at £3.4m to a regional developer – a figure that reflects more than £230,000 for each of the private plots.
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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BECKENHAM BR3 Acting for the partners of PJH Solicitors, we’ve recently concluded the sale and leaseback of their prominent headquarters building, Kelsey House, in central Beckenham. The detached building comprises a ground floor bar/ restaurant, with four floors of offices and a residential apartment above - mixed-use in the truest regard! Offering future potential for active management, extension and/or conversion to residential, our instructions were to generate maximum interest in order to achieve the best possible freehold value. Our marketing campaign was a resounding success, and several offers were received above the guide for a variety of different uses. We ultimately concluded a sale to a private commercial investor at more than £4,000,000 – a figure that reflects a healthy £270/sqft, and a NIY of just 6%. The new owner intends to maintain the commercial use, and a leaseback deal was agreed to secure PJH’s occupation in the building. Would a sale and leaseback deal work for your business? Please contact Tom Luck or Jeff East for some confidential advice, free of charge.
ELEPHANT & CASTLE SE11 We relish the challenge of a deal that’s a break from the norm. I’ve already reported on the sale & leaseback agreed in respect of Kelsey House in Beckenham, but the sale of this industrial unit in Elephant & Castle required a more delicate approach.
Owned by a private client, the property directly faces the new Elephant Park regeneration scheme, and clearly offers development potential. The issue, however, was that our client owned a leasehold interest (70 years unexpired), and the freehold is owned by the Local Authority. We explored the possibility of enfranchisement and asked the Council to sell their freehold, but got no joy on either front. The Council did, however, show interest in acquiring the unexpired lease themselves, but clearly we expected to achieve a development premium. To assist in agreeing terms, local architects were engaged to explore the development potential of the site. Their appraisal encouraged the Council to pay a reasonable premium to simply surrender the lease. We simultaneously agreed for our client to remain in occupation under a short term licence, and despite the inevitable red tape, the entire transaction was concluded relatively swiftly. If you’re not sure how to unlock the potential or value from your property, please get in touch.
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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PLANNING MANAGEMENT The depth of our Planning Management services, and the roster of projects we’re overseeing continues to grow on a monthly basis. Ours is not a team focussed on volume though - we aim to add value on behalf of landowners and clients that for whatever reason require assistance; whether as a result of limited experience, or simply a lack of time. Our current client list includes private individuals, commercial investors, funds and developers. We have schemes in Lambeth, Southwark, Bromley, Greenwich, Lewisham, Bexley and Croydon, but for the purposes of this Update I’ve chosen to focus on applications in Lewisham & West Croydon. The Lewisham site is owned by a regional developer, and is currently occupied by a small supermarket and offices. We’ve already secured planning permission for 22 flats on part of the Croydon
site, and are awaiting the outcome of a further application for comprehensive redevelopment. Our proposal for 51 apartments is due to be determined in November. We also acted for a private developer in the acquisition of a small site near to West Croydon Station. We’ve been retained to manage the planning process, and have recently submitted an application for a new 3 storey block comprising nine apartments. That scheme is also due for determination in November. The planning process continues to become both more challenging, and more costly, but remains the best way to add value to certain properties. If you own a property or site that would benefit from a planning consent, but don’t want a buyer to take all the profit, why not give us a call? Lewisham
BROMLEY BR1 Our Asset & Equity Management team has grown quickly, and now exclusively co-ordinates the acquisition, management and disposal of a variety of projects for several private property companies. We currently have around £30m of assets under management, and we’re continually seeking new opportunities. We recently acquired a portfolio of 10 flats and houses in Bromley North from executors. Vacant possession will be procured across the portfolio, and each unit sold on a piecemeal basis. Clearly we’re only able to acquire via auction or other agents, and therefore if you have a portfolio to sell, or property that may offer a planning related uplift we’d be delighted to hear from you.
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 DARTFORD DA1
NUNHEAD SE15
Formerly occupied by a church hall, this development opportunity with planning permission for 6 self-contained one bedroom apartments was sold to a local development firm.
A prominent A1/A2 retail unit situated within a popular secondary parade on trendy Nunhead Lane. Let on new lease terms to a local clothing retailer.
NEW ELTHAM SE9
LOCKSBOTTOM BR6
A detached former GP surgery in a prominent position on the corner of Bexley Road. Sold with D1 use to a day nursery operator.
An attractive, detached retail investment with development potential acquired for ÂŁ1.4m on behalf of a local investor.
PENGE SE20
BERMONDSEY SE1
Freehold lock-up shop with 2 self-contained apartments in the uppers. In need of refurbishment and offering development potential (STPP), the building was sold to a local investor.
Self-contained B1 office situated within the iconic Art Deco Alaska Factory development, let to a manufacturing company. We urgently require more B1 offices in SE1.
GREENWICH SE10 Unbroken freehold investments (regardless of whether they are residential, commercial or a bit of both) have proven particularly popular during 2017. This property is located on the main A2 on the outskirts of Greenwich, and comprises a ground floor restaurant with 6 small self-contained apartments in the upper parts. Offered majority vacant, our marketing focussed on the obvious active management
1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
120 Bermondsey Street, London SE1 3TX 020 7089 6555
and break-up potential. We had no shortage of interest, and quickly exchanged contracts with a private investor at a figure that reflects a 7% NIY on the ERV. We’re urgently seeking instructions to market similar freehold investments. Please contact one of our offices if you have a similar property to sell.
acorncommercial.co.uk commercial@acorn.ltd.uk
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ST LEONARDS-ON-SEA TN37
Leolyn Care Home
Clyde House
Acting on behalf of a major care firm, our Corporate Asset Services team has managed the disposal of several surplus care homes over the last 12 months, and concluded the sale of two more during the third quarter of 2017. Our client has undertaken a strategic review of its considerable portfolio, and our role is to dispose of the buildings that are non-compliant, or no longer fit for purpose. The proceeds generated are being recycled to improve other properties, and acquire new sites. The two properties sold recently are located at each end of St Leonards-on-Sea, on the East Sussex coast. Clyde House comprised a 43 bedroom care home arranged over three
storeys on a plot of almost an acre. We concluded a sale to a local private school at £1.5m. Leolyn care home comprised 32 bedrooms in an attractive 4 storey building of more than 12,000 sqft. The property was sold to a Registered Provider (Housing Association) at £1.3m for use as emergency residential accommodation. Both properties benefitted from local and national marketing campaigns, the block viewings were well-attended, multiple offers were received and in both cases we exceeded our client’s price expectations. We have more redundant care homes coming to the market – register your interest at www.acorncommercial.co.uk.
STAFF FOCUS: LOUIS MARKHAM Louis joined Acorn’s Commercial & Development Division after a short stint working in commercial lettings in North London. He works closely with Jeff East and Tom Luck assisting in the sale of a variety of properties. Louis is predominantly based in our Renaissance Works office on Bermondsey Street. If a movie was created about your life, who would you want to play you? I’m struggling to choose between Jackie Chan, The Rock or Jeff East.
1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
What are you most afraid of? Mice and rats. Describe yourself in 3 words? Logical, constructive & personable. What experience have most people had that you’ve missed out on? Breaking a bone & having a nose bleed. What’s your go-to drink? Sparkling water.
What fashion trend have you never understood? Crocs. Nothing more needs to be said.
If you could live anywhere in the world, where would it be? On The Nauti Buoy somewhere in the Caribbean.
If you had a yacht, what would you call it? The Nauti Buoy.
louis.markham@acorn.ltd.uk 020 7089 6555
120 Bermondsey Street, London SE1 3TX 020 7089 6555
acorncommercial.co.uk commercial@acorn.ltd.uk
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RENAISSANCE WORKS SUMMER PARTY 2017! Regular clients will attest to the fact that we need little excuse for a party. Summer was coming to an end, but rather than mope we threw a do! Our London Bridge offices once again proved a great venue, and clients, contacts and colleagues alike all seemed to have fun! If you haven’t visited our Renaissance Works offices, call the team and pop in for a posh coffee!
ASK ADAM! The next time you’re stuck in traffic, look out for our very own Adam Hosking on the back of a bus! Our ‘Ask Adam’ campaign has been rolled out on a variety of routes and has already provoked some interesting calls! If you have a commercial, development or investment property and would like no nonsense sales or lettings advice, why not ‘Ask Adam’? If you spot him, tweet us a picture @acorncommercial!
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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JAMIE STEVENSON Jamie joined the team on a permanent basis in September 2017 following a successful summer of work experience. Whilst wearing a suit and working in an office were a shock to Jamie’s system, his rapid integration prove that he’s a real team player. As a former professional rugby player his teams included London Scottish, Wasps and the Scotland A team, so what led Jamie to turn out for Acorn?
Unfortunately a series of knee injuries cut short his promising sporting career, but some previous property-related work experience arranged by London Scottish gave Jamie a taste for the industry. Jamie grew up locally, was schooled at Whitgift and we’ve been mightily impressed with the way in which he has thrown himself at his new career.
OUR TEAM
Adam Hosking Associate
Emma Fox Operations Manager
Jeff East Director
Tom Luck Director
Kyle Peters New Business Manager
Tony Wood Projects Manager
Steven Flannighan Projects Co-ordinator
Louis Markham Projects Assistant
Could This Be You? If you are interested in joining our team, please send your CV to commercial@acorn.ltd.uk
Jamie Stevenson Projects Assistant
@acorncommercial
Lily Whitby Senior Secretary
Emma Cramer Team Secretary
acorncommercial.co.uk
commercial@acorn.ltd.uk