Update 4th Quarter 2018

THE UPDATE 4TH QUARTER 2018

See page 3...

On page 2...

Our development team sold this consented site in Anerley in December...

On page 4...

Not one, but two hotel deals exchanged in the final quarter...

On page 6...

In a nut shell — a snapshot of business concluded across the team...

On page 8...

The Acorn Book Club (ABC); our new community initiative...

EDITORIAL

Well, 2018 finished with what now seems to be the regulation surge in the run-in to the festive break. We had a busy December, but frustratingly spent much time on a few deals that ultimately didn’t happen in time. I can’t understand why law firms allow their staff to take leave in the third week of December; and then act surprised when the phone rings off the hook!

Anyway, every cloud etc – at least we’re left with a strong pipeline for January!

So, what of the market? Well it’s a challenge, but it’s certainly still moving. Across the wider Group we ground our way through a hard year on residential sales, but finished having sold more than 3,500 homes across South London & North Kent. Residential lettings enjoyed a bumper 2018 — we let in excess of 4,000 properties, and now manage over 6,000 units for private and corporate landlords. We’re a transactional business, so these numbers matter.

Jeff East — Director

jeff.east@acorn.ltd.uk

For the Commercial & Development Division, 2018 was a success. It wasn’t the best 12 months we’ve ever had, but it was far from the worst.

In spite of the residential market, land sales remained strong, and we concluded several sales at cracking values in the back half of the year. Commercial lettings business was consistent, but without a doubt the most soughtafter properties were commercial freeholds.

Anything from shops and uppers, investments and vacant owner-occupier stock – we were

ANERLEY SE20

never short of interest. We expect that theme to continue in 2019 given that interest rates are still low, money is cheap and other forms of investment remain volatile.

The position of some developers confuses me though. Whilst we had no problem selling consented sites for strong money in 2018, the competition levels aren’t what they were in 2017.

Talking to some buyers they’ve decided to “sit on their hands until after Brexit”. Now you could read different meanings into such a statement, but if the political climate is truly holding them back, exactly when is the landscape going to improve, and does it actually need to improve?

I’m also regularly told that “the market is cyclical”, and “we’re heading for a fall”. I remember the last two recessions well, and what I also fondly recall is the bunfight for sites when the market turns for the better. Surely if you want to make more than a builder’s margin, you’ve got to be brave and call the bottom of the curve at some point?

Help To Sell, sorry, I mean Help To Buy is there until 2020 at least, so we just can’t see the new homes market stalling further in 2019, regardless of Brexit.

Anyway, we wish all our clients, contacts and professional colleagues a Happy New Year, and all the best for 2019. As always, if you have a property to sell, or are just interested in some forthright property-related advice, please give us a call!

The back end of 2018 saw strong demand, and equally encouraging results in the sale of consented residential development sites.

This particular site comprises a redundant retail unit and upper parts acquired by a regular client of ours in 2017 on an unconditional basis. Planning permission was successfully secured for the construction of a new block comprising 8 flats over a ground floor commercial unit, and later improved by the deletion of the commercial space and addition of a further residential apartment.

We were delighted to be appointed to manage the sale, and set about a typically thorough marketing campaign. A relatively simple design and good mix of proposed units helped us to generate a decent level of interest, and a number of competitive offers were received. An offer was accepted from a private developer whose solicitor interestingly told us the exact date that contracts would be exchanged!

Proving every bit true to their word, unconditional contracts were exchanged just under three weeks later, and on the specific day predicted! Furthermore, completion took place inside a week.

In an unpredictable market we work closely with colleagues in our New Homes & PRS Divisions to ensure that buyers are furnished with up-to-the-minute values and evidence. This helps us to achieve the very best residual land values for our clients. If you have a development site to sell, please get in touch with one of our offices.

2

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

LE SA R

Securing planning permission for the redevelopment of any site appears to be an increasingly challenging task, and that is undoubtedly one of the main reasons why consented sites remain so hotly-contested.

MORE LIKE THIS...

FO

GREENWICH SE10 Although the second-hand market has stalled somewhat, 40% interest-free deposits available via the government’s Help to Buy scheme are ensuring that the new homes market stays busy. With £/sqft rates in the inner London boroughs reaching eye-watering levels, many developers have turned their focus to Zones 3 & 4, where resales are typically sub £750 sqft.

The owners of this former bookbinders site in the popular suburb of Greenwich successfully secured planning permission for a new 5-storey block comprising 24 apartments. Furthermore, the favourable provision of just 4 affordable units will be made by way of discounted market sales to local people, negating the involvement of a Registered Provider.

So, a freehold site with an attractive consent that qualifies for HTB, and is located in one of the most sought-after postcodes that Zone 3 has to offer — there aren’t that many more boxes that could be ticked!

We were appointed as sole agents, and undertook a national marketing campaign. Considerable interest was generated, and a host of offers in excess of the guide were received. Regional developers, Featherstone Homes, proved the most competitive, and after a reasonable period of due diligence, contracts were exchanged at a smidge over £5M. The sale price represents almost 44% of the GDV, and over £200,000 per plot. We’re not miracle-workers, and the market isn’t easy, but if you need a vastly experienced agent to sell your site for the best possible price, give us a tinkle.

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

120 Bermondsey Street, London SE1 3TX 020 7089 6555

GREENWICH SE10 Vacant freehold development site just a short walk from historic Greenwich town centre, DLR and the Cutty Sark. Offered with full planning permission for the construction of a contemporary block comprising ground floor commercial space and 6 luxury two bedroom apartments. GDV £4.15M. GUIDE £1,700,000 F/H

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

3

LEWISHAM SE13

Conditional contracts were exchanged between Skillcrown Homes and Travelodge Hotels in respect of a prime site on Lewisham High Street in the final quarter of 2018. A planning application has been made to the London Borough of Lewisham for the construction of 127 hotel rooms over 388 sqm of commercial space in a part 4, and part 6-storey building designed

by Formation Architects. Having acquired the site for Skillcrown, we’ve subsequently introduced Travelodge who will take a lease over the majority of the property on completion.

BERMONDSEY SE1

On the subject of hotel deals, early November saw contracts exchanged in respect of a prime site just off Tooley Street – in the heart of Bermondsey. Subject to planning permission and construction, Travelodge have committed to taking a 25 year lease over a brand new 10 storey building designed by SPPARC comprising 80 hotel bedrooms, and a ground floor bar/café. A successful public consultation event was held recently, and a full planning application is being readied for submission to Southwark Council, so watch this space…

4

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

PURLEY CR8

We’ve recently completed the sale of two adjacent sites in sought-after Selcroft Road, Purley. Planning permission is in place for the demolition of two detached houses, and the construction of a total of 15 new apartments across two blocks. Our marketing generated a number of offers, and a sale was ultimately completed at £140,000 per plot. Residential development sites remain at a premium, so if you have one to sell anywhere in London or the South East, please get in touch with one of our offices.

PENGE SE20

Having sold the freehold of this mixed-use block to a major investment company in 2017, we subsequently negotiated the surrender of the commercial lease from a second-hand car dealer. With vacant possession available we introduced roadside retailers Topps Tiles, and completed a lease both at a higher rent, and on more commercial terms. With Topps open and trading, we then acted as joint auctioneers with Allsop, and secured a sale of the long leasehold commercial investment at a NIY of 6%.

Whether its acquisition, letting or sales advice you require, we truly are a one-stop shop when it comes to commercial property services.

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

5

IN A NUTSHELL

6

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

SYDENHAM SE26

PURLEY CR8

Three newly built commercial units forming part of a major mixed-use development scheme undertaken by Crest Homes. We acted for Crest in securing a forward sale of almost 10,000sqft of commercial space with A1, A3 & D1 uses at £1.95M.

Freehold development site with full planning permission for the construction of 9 new selfcontained apartments. We sold the site to a private developer for £1,175,000. We’re market leaders in the sale of consented sites — please call for advice.

WALLINGTON CR0

DEPTFORD SE8

Mixed-use freehold investment in a prominent secondary parade, sold to a private investor. Comprising a coffee shop let at £20,000pax and a 3 bedroom maisonette producing £14,400, we achieved £480,000 — a blended yield of 6.7% NIY.

Detached, period building extending to approx. 2,500sqft and arranged over 4 floors.

Previously used as offices, but offered in a near derelict state, we acted for the Sir John Evelyn charity in securing an unconditional sale at £850,000.

BROMLEY BR2

LEE SE12

Vacant, freehold building comprising office and warehouse accommodation extending to approx 3,500sqft.

Parking to the front and a small yard to the rear. Offering apparent development potential the property was sold unconditionally for £1M.

Freehold site close to the busy South Circular Road comprising 11 lock-up garages and a single storey workshop. Offered with various leases and licences in place, the property produces £17,400pax. We achieved £370,000 — more than 23% over the guide!

SUNDRIDGE PARK BR1

CRYSTAL PALACE SE19

Corner lock-up shop unit, opposite Sundridge Park Station. Extending to approx.

600sqft, the unit has been let to an independent beauty therapist at an initial rent of £15,000pax. Similar instructions always required.

Another prominent corner unit — this time just a short walk from Crystal Palace Station.

Similarly to Sundridge Park, we let the space to a beautician.

There’s certainly going to be some well turned-out people in Bromley & Crystal Palace!

120 Bermondsey Street, London SE1 3TX 020 7089 6555

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

MEET THE TEAM

Adam Hosking Associate

Jeff East Director

Tom Luck Director

Steven Flannighan Projects Co-ordinator

Louis Markham Projects Assistant

Lily Whitby Senior Secretary

Jamie Stevenson Projects Assistant

Josh Bevan Projects Assistant

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

Chloe Wiseman Projects Assistant

Emma Cramer Team Secretary

Rosie Davis Team Secretary

REPORTS IN NEXT ISSUE SOLD

SOLD

SOLD

GREENWICH

HARINGEY

SOLD

TULSE HILL

DARTFORD

SOLD

PLUMSTEAD

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

SOLD

CRYSTAL PALACE

120 Bermondsey Street, London SE1 3TX 020 7089 6555

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

7

READING IS MY

SUPERPOWER CALL FOR UNWANTED BOOKS The Acorn Book Club works within the local community to collect and redistribute pre-loved children’s books to local schools and organisations.

Please drop off any unwanted books suitable for 3--11 year olds at any Acorn, John Payne or Langford Russell branch!

Follow us at AcornBookClub

acornbookclub.co.uk 8

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