Redundant care home sold for £3 million - See page 3....
T H E U P DAT E
4 TH QUARTER 2017
INSIDE THIS ISSUE
On page 2
On page 4
On page 7
Read about a mixed-use investment that we’ve now sold three times...
Redundant scrap yard with no planning permission sold for £2.5m+....
GDPR, what you need to know...
EDITORIAL In recent years I’ve become used to reporting a fantastic final quarter, but it would be untrue to claim the same for 2017. I write this editorial in very early 2018 (Happy New Year by the way), and have had time to analyse the various enquiry logs and figures that we keep each year. The simple reality is that the first 6 months of 2017 were far more buoyant than the second half of the year. The professional side of the industry normally slows in July and August, but then picks up quickly again in September and finishes with a flourish. Thankfully activity did pick up in late 2017, but it was very late – December to be precise! A strong month closed off the year relatively well, but more importantly gave us some momentum and some good new instructions with which to kick off 2018.
Jeff East - Director jeff.east@acorn.ltd.uk
As always this Update reports on some of the business concluded during the last quarter though. Over the following pages you’ll read that we completed a varied array of deals; acting for an even more varied array of clients from private individuals to investment companies, regional developers, housing associations and Receivers. As far as transactions are concerned, it seemed to us that many habitual buyers and traders were worried
into sitting on their hands during the latter part of 2017. Planning delays, a dull residential outlook, negligible rise in interest rates and paper talk likely all played their part, but that left the door wide open for shrewd longer term investors, and new school opportunists to snap up a good deal or two (or three). Whilst we comfortably beat guides in all of the freeholds we sold between September and Christmas, we could clearly see the buyer’s logic behind every deal. That certainly hasn’t always been the case over the last few years, which suggests that there’s value in the current marketplace. Fortune favours the brave, as the saying goes… As I mentioned earlier we’re carrying a good pipeline into 2018, and have some interesting instructions to bring to the market. We have a settled team that is vastly experienced and hungry to do a good job for new and existing clients alike. So, if you have a property to let or sell, require advice in respect of your portfolio or assistance promoting a site for development, please get in touch. Meanwhile I hope that this final ‘Update’ for 2017 proves of interest.
LOCKSBOTTOM BR6 One of the joys of estate agency is that a property is only ever sold temporarily, and if you provide a good service, they often pass back across your desk. We’ve now sold this attractive mixed-use building in upmarket Locksbottom three times! The most recent custodian bought the property from us in early 2013, and we subsequently helped him secure residential use across parts of the building, and let some vacant offices. A change in our client’s investment strategy led to our appointment in the summer of 2017. Given the affluent location and obvious kerb appeal we had no shortage of interest. Comprising a restaurant, 2 bedroom apartment and split level offices, and producing £74,500 pax, we promptly concluded a sale to another local investor at a 5.9% NIY. Our client was delighted – in addition to providing him with an 8% net yield for almost 5 years, the sale generated a profit of more than 30% on his original investment. Please get in touch if you have a property investment to sell, or indeed if you’d like to acquire one!
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
2
LOUGHBOROUGH JUNCTION SE24 We were recently appointed by Gateley Plc & Begbies Traynor acting as liquidators, to market and dispose of this redundant scrap yard in Herne Hill. Whilst the property appears to offer development potential, our clients sought a prompt unconditional sale at the best possible price. We undertook a national marketing campaign, culminating with offers being invited by a pre-determined deadline. Numerous offers were received for the site, and such was the competition, that contracts were exchanged with the chosen bidder at more than 40% over the guide within just two weeks. Furthermore, completion of the sale took place two weeks thereafter. Our vast experience in selling similar sites with development potential leaves us perfectly placed to maximise value on our clients’ behalf. Our Corporate Asset Services team regularly undertakes work such as this for banks, building societies, Receivers, funds, institutions, charities and local authorities.
BLACKHEATH SE3 The sale of the former Aldington House Care Home in October 2017 was the third that our Corporate Asset Services team concluded on behalf of a private care operator in a three month period. The redundant ‘span’ property sits on Blackheath’s prestigious Cator Estate – one of the most sought-after residential locations in South London. Arranged as 32 bedrooms and extending to over 10,000 sqft, our instructions were to secure the best possible price on an entirely unconditional basis. A typically high profile and thorough marketing campaign was undertaken, but we anticipated that a local buyer would be best placed to understand the true value. Purelake New Homes have developed hundreds of residential units in Greenwich, bid almost 25% over the guide price and committed to exchange contracts within 10 working days. Proving true to their word Purelake quickly concluded their acquisition, and at the time of writing are finalising their development proposals for the site.
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
3
SEVENOAKS TN14 We have more than 25 years’ experience selling development sites in London and the South East, and are regularly contacted by clients aware of our reputation for achieving the very best prices. We’ve acted for Tranquil Homes regularly for over a decade, and were recently instructed by them to find a buyer for this residential development site with planning permission in Sevenoaks. The site has consent for the construction of a new block comprising 5 units; 3 two bedroom and 2 one bedroom apartments. There also appears potential for an improved scheme (stpp). We gave the marketing our all, and concluded a sale to a local developer previously unknown to us at the healthy sum of £130,000 per plot. We’re hoping to work with the new owner in marketing the finished units via our New Homes Division in late Summer 2018.
KINGSTON KT2 Acting jointly with Allsop, we were appointed to sell this unbroken, mixed-use freehold investment in Kingston upon Thames via auction in late 2017. Comprising a ground floor commercial unit let to Papa Johns (GB) Ltd, a two bedroom flat on the first floor and a three bedroom flat on the second/third floor both let on AST’s, the investment generated an income of £63,200 per annum. Not content to hang around for the auction, we set about generating interest with the aim of concluding a sale prior. Our efforts proved successful when a buyer registered on our database exchanged contracts prior to auction at £1,190,000 – a blended NIY of just 5%. To cap matters off for our clients, the buyer completed 4 weeks early! Whilst auction remains a popular method of sale for some institutions, there’s no reason why a private treaty sale can’t be concluded just as quickly, and often at a higher price.
SYDENHAM SE26 Having secured prominent new premises from which to operate our Sydenham agency branch earlier in 2017, our previous offices at 54 Sydenham Road became surplus to requirements in the final quarter. The building had served as our base in Sydenham for 20 years, occupies a prominent position on the ‘high street’ and benefits from heavy passing footfall. Generating interest was never likely to be a problem, and sure enough we quickly agreed terms with a local solicitor’s practice attracted by the existing A2 use and quality fit-out. The remaining 15 years of the lease were assigned to the ingoing tenants who will be operational in early 2018. If you’re relocating a business and need property related advice, please contact one of our offices in the strictest of confidence.
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
4
IN A NUTSHELL
1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
CATFORD SE6
BROMLEY BR1
This ground floor shop is located in the iconic Eros House, on the corner of Brownhill Road and Rushey Green. Benefiting from A1, A2 and A3 use, it was let to an independent restaurant.
Newly constructed ground floor B1 office suites close to Bromley town centre available to buy or let. Two of the units were sold during the final quarter; three remain available.
BERMONDSEY SE16
KESTON BR2
Freehold development site off Jamaica Road with consent for two contemporary 3 bedroom mews houses, sold to wellestablished local developers.
Newly refurbished, high quality ground floor office suites in Keston to let. Four units have been let this quarter to independent businesses, and only 3 out of 7 suites remain.
CRYSTAL PALACE SE19
LADYWELL SE13
Previously occupied by a bank, this prominent retail unit welllocated in the thriving centre of Crystal Palace was let to a local catering company at ÂŁ31,000 pax.
A prominent A3 unit in Ladywell Village with residential upper parts. We agreed a 20 year lease with a local pizza restaurant chain, at a rent nearly 10% above the guide price.
BROMLEY BR2
BERMONDSEY SE1
A detached freehold 3 bedroom house in need of refurbishment with a large plot of c. 0.4 acres offering additional development potential; sold to a local developer for in excess of guide price.
An A1 retail unit in a prominent location along Tower Bridge Road let to an established boutique health and fitness company at ÂŁ22,000pax.
120 Bermondsey Street, London SE1 3TX 020 7089 6555
acorncommercial.co.uk commercial@acorn.ltd.uk
5
WE ARE NOW ON FACEBOOK! Be sure to ‘like’ us to see our latest instructions, and other updates!
STAFF FOCUS: KYLE PETERS Kyle started his property career at Acorn in 1996 and was instrumental in establishing the Commercial Division in 2006. Between 2008-2017 Kyle enjoyed successful stints working client side in the Central London investment market and retirement sector. Kyle is vastly experienced in the identification of development opportunities, and their promotion through to successful delivery. He revels in unlocking complex transactions, and getting stuck in to the details and strategy behind a deal.
NEW YEAR
What did you want to be when you were younger? I wanted to fly fast jets “inverted” while flipping MiG pilots the bird like they do in Top Gun! If you won the lottery, what would you do? I would travel as much as possible with my wife and kids, creating new memories. Favourite time of year? The period between Christmas and New Year I normally spend in Cornwall with my family walking on beaches in the wind and rain, and then eating in front of open fires in the pub. Nothing else comes close.
LOOKING TO SELL OR LET
YOUR PROPERTY IN 2018?
Where in the world would you most like to retire? I plan to spend my winters on the North coast of Cornwall, and summers in the South of France or Spain. Favourite car? A difficult question for a serial car buyer and petrol-head, but on balance it has to be a German marque, and of them all the legendary Porsche 917 tops the tree for me! If you could trade places with someone for one day, who would it be and why? Donald Trump. I couldn’t do much worse than him, surely?... If you could choose your age forever, what age would you choose and why? The early forties have been really good to me what with my marriage and the recent arrival of my baby daughter, plus my body hasn’t completely given up as yet! If you could meet any historical figure, who would it be and why? Winston Churchill. I’m not sure I would actually like him (nor he I,) but I am sure I would find the experience fascinating!
1 Sherman Road, Bromley, Kent BR1 3JH 020 8315 5454
120 Bermondsey Street, London SE1 3TX 020 7089 6555
Contact us today for free, forthright property advice acorncommercial.co.uk
acorncommercial.co.uk commercial@acorn.ltd.uk
6
SANTA DASH Sunday 3rd December saw hundreds of Santas take part in the Bexley Santa Dash in aid of the Greenwich & Bexley Hospice! Despite the freezing temperatures and early start, over 750 Santas (and dogs) walked, jogged or ran the 5km course to support the fantastic work undertaken by the hospice. The local theatre school provided entertainment, and Acorn staff ensured all runners were cheered on throughout and awarded with a medal and goodie bag at the finish line. Congratulations to everyone who took part; it was a fantastic morning. Same time next year?
GDPR The General Data Protection Regulation (GDPR) will be enforced across Europe, including the UK on 25 May 2018. The law aims to give citizens more control over their data and to create a uniformity of rules across the EU. As of 25th May, all applicants and contacts will need to explicitly express their interest in receiving emails from any company. Any party who doesn’t confirm their interest will unfortunately be lost from business databases to ensure they comply with the new regulations. In the coming weeks we will be circulating an email to ensure our database and operations are compliant so keep your eyes peeled!
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
7
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 lily.whitby@acorn.ltd.uk
Jamie Stevenson Projects Assistant
Lily Whitby Senior Secretary
Emma Cramer Team Secretary
OTHER NEWS IN BRIEF... Industrial site in Peckham – conditional contracts exchanged at £16.5m…Development site in Bermondsey – option exchanged at £1.8m…Business centre in Herne Hill – contracts exchanged at £3m+…Permitted Development scheme in Bromley – contracts exchanged at £2.3m…Residential investment in Hither Green – contracts exchanged at £575,000…Development site in Tunbridge Wells – completed at £750,000…Freehold restaurant in New Eltham – contracts exchanged at £920,000…
@acorncommercial
acorncommercial.co.uk
commercial@acorn.ltd.uk