The Update 3rd Quarter 2021

3rd QUARTER 2021 See page 3...

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Unbroken apartment block sold in Chislehurst...

5,000sqft of offices with 12 flats in the upper 4 stories...

Development site with planning for a new block...

A selection of office deals concluded this quarter...

EDITORIAL Given the craziness of 2020, even our wildest dreams didn’t have us pushing at our best year ever in 2021.

Jeff East — Director

jeff.east@acorngroup.co.uk

We’re fortunate in that property was one of the industries least affected by the pandemic.

Furthermore, being a diversified and entirely transactional business has actually benefited us for once! The High Street retail and prime office markets are only now beginning to recover, but we only occasionally flirt with those sectors, rather than rely on them. Instead we’ve made ourselves very busy selling (and occasionally buying) development sites and mixed-use freeholds for developers, investors and institutions.

The focus on housing and peoples’ homes continues to drive the development market, and has undoubtedly been aided by Help To Buy and the SDLT holidays. Investors, on the other hand, have inevitably turned to property as they sit on cash, interest rates are at an all-time low and debt remains cheap. The boon for us has been that we typically sell exactly what buyers currently want, and the profile and reputation that we’ve built as a Group over the last 40-odd years has us in pole position to maximise value for our clients. Typically the third quarter can be a little frustrating – a gradual winding down for the August holidays, followed by a manic recovery in September.

This year was different. Whether people didn’t go away, or just carried on working whilst they holidayed, our offices were consistently busy throughout.

As you’ll read over the following pages we’ve completed a wide variety of deals for an even broader spectrum of sellers. From unbroken residential blocks to major landmark mixeduse developments, we’ve consistently secured premium prices. The summer’s endeavours aren’t fully covered in this Update though, as we don’t report deals until they complete.

Rest assured there’s more exciting news to come at the year end!

Our focus for the final quarter of 2021 is two-fold. Firstly we need to replenish our stocks. The supply and demand balance is, well, un-balanced, and we’re urgently seeking fresh instructions from motivated sellers of development sites, commercial freeholds, investments and portfolios. Don’t hold back hoping the market will continue to rise – the grass isn’t always greener! Please get in touch for free, impartial advice – your property might be worth more than you think.

Secondly, we’re recruiting, and very keen to add the right calibre of staff to the team. Experience isn’t essential; what we’re after are smart, polite, driven individuals able to get the very best value for our clients. If you know of someone eager to get into the industry, or looking for a change of career please put them in touch.

CHISLEHURST BR7 Well-located in a lovely street close to Chislehurst Station, this unbroken apartment block was undoubtedly the most sought-after property that we sold during the third quarter.

The post-war building is arranged to comprise four spacious 2 bedroom flats; each with an undercroft garage, off-street parking and communal gardens. The property had been held as a family investment for many years, and was sold to help fund our clients’ retirement. Offered subject to four ASTs and producing £51,180pa, the property appears to offer development potential, albeit an application had been refused for an additional two apartments.

Nevertheless, our marketing generated more than 100 enquiries, and 20 offers in excess of the guide!

Several rounds of bidding were required to whittle down the interest, and we ultimately achieved 20% more than our clients expected. Indeed the final sale price for the unbroken block with tenants in situ was more than the piecemeal value of the four apartments with vacant possession.

Residential investments are clearly highly sought-after at present, so if you have a similar property to sell please get in touch.

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St. Marks Road, Bromley, Kent BR2 9HG 020 8315 5454

2 North Street, Strood, Kent ME2 4SH 01634 969678

SIDCUP DA15 Larger development sites in central and suburban London are rarely straightforward, but fortunately we relish a challenge, and problem-solving is our forte!

We had advised the owners of this landmark commercial site since they bought it almost 7 years ago. It clearly offered development potential, but patience was required to unlock its true value. The ground floor is occupied by a Co-Operative food store, whilst the first and second floor offices were home to a well-established apprenticeship and careers provider.

Vacant possession would be required to undertake a major redevelopment of the site, but there was the small matter of planning to tackle first. We helped with consultancy and viability advice, and our clients secured permission for the construction of a 9 storey building comprising a replacement supermarket of 11,500sqft, and 59 residential apartments. No on-site affordable housing is required, and terms were agreed with Marks & Spencer to pre-let the new food store.

CGI

Our marketing campaign was launched in the midst of Lockdown 2, and continued through Lockdown 3. In spite of this we were able to attract interest from several credible private developers, and a number of apparently larger outfits. Frustratingly it took several months to confirm what we always suspected – that the ‘larger’ firms were filled mostly with hot air. Fortunately we’d maintained the interest from the private developers, and ultimately agreed the terms of a very straightforward transaction.

The sale was exchanged and completed simultaneously in the summer of 2021 at £7.15M, and construction will commence in early 2022 once the Co-Op has vacated.

KINGS CROSS WC1

This interesting end-of-terrace building had been owner-occupied for many years, but became surplus to requirements when our client sold his business and retired.

Arranged over 7 stories, the property comprises 5,000sqft of offices across the lower ground, ground and first floors, with 12 flats in the upper 4 stories.

One of the apartments was included in the sale; the others all previously sold on long leases with just 54 years unexpired. In addition to the vacant office space and reversionary value of the short leases, a pre-application for 4 additional apartments plus commercial space had been positively received.

The property is well-located just a few hundred yards from Kings Cross & St Pancras Stations, and offered various angles to investors, developers and speculators alike.

We had no shortage of interest from a wide variety of buyers; the keenest being a developer who’d been looking to acquire freehold offices for his own occupation in Central London for some time. Terms were promptly agreed, and a sale concluded in a timely fashion at £3.2M. With cash seemingly available in abundance across the market, and debt remaining cheap, we’re experiencing huge interest in any freehold we offer for sale at present.

If you have an investment to sell please get in touch for a free appraisal – you might be pleasantly surprised by its current value!

120 Bermondsey Street, London SE1 3TX 020 7089 6555

acorncommercial.co.uk commercial@acorngroup.co.uk @acorncommercial

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BEXLEYHEATH DA6

As regular readers will have heard before, we love a consented development site! We’ve been selling them for over 25 years, and in the southern M25 corridor our track record is second to none.

We weren’t instructed to sell this particular site in Bexleyheath, in fact the seller only held an option; not title to the property. Having secured planning permission for a new block close to the town centre comprising 9 small self-contained apartments, we asked for the opportunity to introduce a retained client.

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Our New Homes Division had recently sold out a similar project for Kent-based developers Tranquil Homes, and we knew they were looking for another site locally. Terms were agreed, and an assignment of the option taken by our clients.

Completion took place in October 2021, with a site start due in early 2022.

We’d always prefer to act for the seller; after all, our expertise is in driving the best possible price.

If for any reason we can’t be instructed though, we have a long list of buyers happy to pay us a handsome fee to secure the right site.

COULSDON CR5 The reality is that the market is strong at present. Investors, developers and owner-occupiers all have seemingly more cash available than ever before, and most properties would sell with little or no marketing. Our role, therefore, is not to find ‘a’ buyer, but instead to find ‘the’ buyer. The buyer willing to pay that little bit more than all the others; the buyer with a hole in their build programme, or that owns the next-door building and simply can’t let an opportunity pass them by.

particularly active across northern Surrey in recent years, and as such we were able to gather a raft of comparable sales to evidence the GDV. Encouraged by our prediction of the likely residual land value, the sellers appointed us to manage the marketing.

We put everything into generating maximum interest in the site and it wasn’t long before we were able to report several offers. A clean bid from a potential buyer keen to complete promptly is always the preference, and in this case we were spoilt for choice. Terms were agreed with the best bidder, and the sale completed expeditiously at £115,000 per plot.

We courted the owners of this consented site in Coulsdon.

They’d acquired it with consent for 2 houses, and improved its prospects by securing planning permission for a new block of 8 apartments. Our New Homes Division have been

If you’ve not dealt with us before please don’t be scared – we don’t bite! We’re always happy to give existing or potential clients free, friendly advice; so please get in touch if you have a property to sell.

St. Marks Road, Bromley, Kent BR2 9HG 020 8315 5454

2 North Street, Strood, Kent ME2 4SH 01634 969678

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OFFICE DEALS BROMLEY BR1

BERMONDSEY SE1

Self-contained ground floor office suite adjacent to Bromley North Station, approx. 1,937sqft, the offices were let on effective FRI terms to a Government-backed charity for £43,500pax (£22.46/sqft).

Budget offices in a great spot just off Tower Bridge Road. Approx.

1,800sqft over ground and basement, let to a modelling agency for 10 years at an initial rent of £53,000pax (£29/sqft).

BERMONDSEY SE1

DARTFORD DA1

Attractive self-contained ground floor office suite c1,600sqft ideally located on the characterful Tanner Street. Let to a digital printers for 6 years at an initial rent of £60,000pax (£37.50/sqft).

Freehold office building on the outskirts of Dartford town centre.

Approx. 3,750sqft over four floors and benefitting from 24 car parking spaces; the property was sold to an owner-occupier for £700,000.

EAST DULWICH SE22

SOUTHWARK SE1

Small office suite just off Lordship Lane extending to approx. 479sqft. Let to a well-established sushi business for 5 years at £13,000pax (£27.14/ sqft). Similar office suites in SE London urgently required.

Third floor offices extending to approx.

3,600sqft; open plan with impressive views.

Located between Southwark & Borough; a 9 year lease was taken by an art brokerage at £117,000pax.

HALSTEAD TN14

BERMONDSEY SE1

Freehold, single storey office building close to Knockholt Station.

Approx. 2,300sqft with ample parking, the property was sold for £475,000 to a local investor.

Ground floor offices in a converted period warehouse. Approx.

1,150sqft on the ground floor; let to a digital marketing agency relocating from Farringdon. 3 year lease at £45,000pax (£39/sqft).

120 Bermondsey Street, London SE1 3TX 020 7089 6555

acorncommercial.co.uk commercial@acorngroup.co.uk @acorncommercial

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IN A NUTSHELL

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CROYDON CR0

LEE SE12

Substantial commercial investment on the busy Purley Way that we had intended to take to market. The two tenants instead decided to join forces, and we agreed a sale at £960,000 to suit all parties.

Detached place of worship on a generous plot with parking. Offered with F1 (formerly D1) use and extending to approx.

1,260sqft, the property was sold from one faith group to another for £700,000.

EAST DULWICH SE22

SOUTH NORWOOD SE25

Freehold mixed-use building located in the heart of sought-after Lordship Lane. Vacant shop over ground and lower ground, plus two flats let on ASTs. We sold to a local investor for £1,100,000.

Derelict freehold 4 bedroom house on 0.38 acre back land plot.

Planning refusal for housing development as recently as 2019. Sold on an entirely unconditional basis for £760,000.

FOREST HILL SE23

SUTTON-AT-HONE DA4

Modern business unit on the popular Forest Hill Industrial Estate. Approx 2,345sqft with 3 parking spaces. Interest was generated quickly, and a 15 year lease promptly concluded at £27,500pax.

Detached chapel arranged over a single storey and extending to approx. 1,578sqft. Wellpresented and complete with F1 use, the property was sold on behalf of one faith group to another for £280,000.

FOREST HILL SE23

WOOLWICH SE18

Mixed-use freehold in a prime position in the centre of Forest Hill. Mostly vacant and offering apparent development potential, much interest was forthcoming. Sold to an investor for £525,000.

A pair of adjacent 3 bedroom houses both let on ASTs. Unsold by our clients at auction, we introduced a private investor on an off market basis, and achieved more than the auction reserve.

9 St. Marks Road, Bromley, Kent BR2 9HG 020 8315 5454

2 North Street, Strood, Kent ME2 4SH 01634 969678

MEET THE TEAM

Jamie Stevenson Commercial & Development Agency

Louis Markham Commercial & Investment Agency

Steven Flannighan Commercial & Development Agency

Rosie Davis Team Secretary

Adam Miles Commercial & Development Agency

Izaak Thomas Commercial Agency

Lewis Knox Apprentice Administrator

Natasha Windibank Junior Administrator

Could This Be You? If you are interested in joining our team, please contact Jeff East on 020 8315 5454.

Lily Whitby Senior Secretary

Jeff East Director

Tom Luck Director

REPORTS IN THE NEXT ISSUE...

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acorncommercial.co.uk commercial@acorngroup.co.uk @acorncommercial

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We’re recruiting!

Are you looking for a new challenge? Or do you know someone keen for a career in the property industry?

We’re recruiting trainee and experienced staff for frontline roles in our Commercial & Development Division.

No experience is necessary, but candidates will need to be self-motivated, smart, polite and hungry to succeed.

We operate from offices in London Bridge, Bromley and Medway and have vacancies on all our teams. Salaries are based on experience but OTE’s are uncapped, and we offer the prospect of genuine career progression within one of the UK’s largest independent estate agency groups.

If you are interested please contact Jeff East on 020 8315 5454 or email commercial@acorngroup.co.uk