4th Quarter 2021

4th QUARTER 2021

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Property sold for the first time in 37 years...

Freehold building sold with consent for 25 apartments...

Freehold office building in South London sold...

8 acre site with 7,000 sqft clubhouse sold...

EDITORIAL As I’m sure you’ll agree, looking back, 2021 was a strange year. Following the events of 2020 nothing was going to surprise us, but the year rolled through in fits and starts.

Lockdown 3 in the first quarter was a grind for everyone. Gone was both the weather of Lockdown 1, and the willingness to play along to Joe Wicks on a daily basis. At least we had business to focus on though, and focus is exactly what the team did.

With no outside distractions and the conviction to enjoy a prosperous year, the endeavours of the Jeff East — Director first quarter set us up well. In the second quarter jeff.east@acorngroup.co.uk we could all go to the pub, but any novelty value quickly wore off. For the most part any socialising was tentative, and by then the property market really had the ‘recovery’ bit between its teeth, and was too busy to be out drinking. As I reported last edition, the traditional summer slowdown never happened, and it was that golden period through July & August that cemented our year’s performance.

The final quarter was frustrating, but with hindsight, inevitably so. The volume and value of transactions were good, but Christmas might well have happened on the 1st December as the final four weeks of the year proved a real challenge in terms of achieving any kind of traction. Second-guessing Covid rules, tweaking travel plans and cancelling parties all seemed to take priority over concluding deals, but every cloud has a silver lining…

Whilst 2021 didn’t quite take the title of being our best, it sits very comfortably in second place. The team deserve a great deal of credit for their hard work, efficiency and the excellent results they achieved for our clients. A quick look at our Google reviews shows that hard work pays dividends, and good results make for happy clients!

That slow December was also a blessing in disguise.

It leaves us with a strong pipeline coming into 2022, and a real chance of bettering the results of 2021.

We’ve got some exciting instructions to launch during the first quarter, but we’re always hungry for more! Consented development sites, commercial and mixed-use freeholds and investments are our bread and butter. We’ve sold thousands of them, and have the experience to maximise value on your behalf. Commercial lettings also keep us very busy.

Shops, offices and industrial units are all soughtafter across our patch, so if you have a property currently sitting vacant please get in touch.

Finally we’re still recruiting, and remain very keen to add to the team. We have vacancies for experienced and trainee staff in all offices; with excellent career prospects and earning potential for smart, highlymotivated candidates. I’d be delighted to hear personally from anyone looking for a new challenge, or indeed keen to get into the industry.

I’d like to take this opportunity to wish you a healthy, happy and successful year, and hope that you enjoy our latest Update.

PECKHAM SE15 This instruction came to us after the owners had tried unsuccessfully to sell the property themselves.

They acquired the building in 1984, and operated a newsagents and general store from the ground floor for 35 years. After retiring, a planning application was made to extend and convert the property to form 4 self-contained flats.

We appraised the site earlier in the year, and provided marketing advice to the sellers. They took the view that an agent was an unnecessary expense, and spent the summer being courted by buyers that contacted them directly. Fed up with abortive sales they eventually got back in touch, and let us do our thing.

The outcome should hardly come as a surprise. Lots of interest from our marketing, busy block viewings and a choice of cash offers. A sale was agreed, and promptly concluded at a premium price leaving our clients with a bigger retirement fund than they expected; even after settling our fee.

If you’re thinking about selling a property without employing the services of an agent, please don’t! A good agent will save you oodles of time, and the premium they’ll get you will more than cover the fee you’ll pay.

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

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

BROMLEY BR1 We’re selling agents in the truest sense, and in the vast majority of cases we act for the sellers in any transaction.

On occasion we represent a retained client, but given the speculative nature of acquisition work we have to really fancy our chances of success!

In this particular instance our client, Purelake New Homes, were made aware that a prime, town centre development site was being selectively marketed. Purelake are headquartered less than half a mile from the subject property, have just completed construction of the tallest building in the borough and yet weren’t included on the selling agent’s shortlist of potential buyers!? We were confident that the combination of Purelake’s appetite for a new project, their unquestionable track record and the depth of our local intelligence would be hard to beat.

We set about tracking down the owners, and managed to make contact via social media. We then promoted ourselves and our clients via a Zoom call, and were given just 24 hours to make an offer. The promise of a quick, unconditional exchange at a full price turned the sellers’ heads, and we made good on that promise less than a fortnight later.

The site on the corner of South Street and Tweedy Road historically formed part of the old Bromley Town Hall complex, and has the benefit of full planning permission for the construction of 53 residential apartments with basement parking.

Purelake completed their purchase in early December at £6.75M, and construction will commence in the first quarter of 2022.

120 Bermondsey Street, London SE1 3TX 020 7089 6555

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

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We’ve been advising the long-term owners of this prominent building on Bexleyheath’s busy Broadway for many years.

We have an Acorn branch in the ground floor, and also let the adjacent unit a couple of years ago.

Our advice goes deeper though, and was tailored around the clients’ desire to improve their own office accommodation, and maximise the value of the asset. When Permitted Development rights were changed to more readily enable office to residential conversions we highlighted the fact that the property offered great potential. The office space arranged over the upper floors was vast, but tired and inefficient. We introduced architects and other professional consultants, and over five years or so several planning applications were pursued.

Firstly our clients secured permission to alter and extend the ground floor in order to provide c.5,000 sqft of modern offices for their own occupation. They then made a prior approval application for the conversion of the upper floors to provide 18 apartments, followed by a further application for 7 more flats in a new third floor.

BEXLEYHEATH DA6 Existing building

CGI

After completing the ground floor works and successfully moving their business, we were appointed to manage the marketing of the vacant development opportunity. This was far from a straightforward deal, but we were able to conclude a sale of the freehold to a local developer at a premium price, with the commercial investment retained by the sellers on a long lease.

BECKENHAM BR3

Freehold offices in the South London suburbs are available with increasing rarity nowadays, and they always prove popular with prospective buyers.

This particular property sits behind the shops on Beckenham’s cosmopolitan High Street; benefiting from a particularly convenient location. It extends to around 5,500 sqft over two floors and offers a flexible layout and offstreet parking. We know the building well having sub-let several of its small offices over the last few years.

Whilst our clients have always occupied the majority of the building themselves, Covid-19 permanently altered their working practices leaving their office space surplus to requirements. We were instructed to arrange a sale, but it would be subject to several existing licence agreements.

Before we could go to market we renegotiated terms with four sub-tenants, and secured vacant possession of two other suites.

Despite only being able to offer the building part-vacant, we had lots of interest from investors and owner-occupiers looking to grow into the space over time. Indeed the ultimate buyer will be occupying part of the property initially, and will gradually take over the remainder of the space as his business expands.

Asset management is becoming an important part of our business. If you need a strategy for your property following a change in circumstances please do get in touch with one of our offices. All initial advice is offered in confidence, free of charge and without obligation.

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

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

We’re undertaking an increasing volume of work for charities and other institutions, and have acted for several new clients during 2021 including the Metropolitan Police Athletic Association (MPAA).

BECKENHAM BR3

After providing appraisal and marketing advice at risk, we were duly instructed to sell the MPAA sports & social club on the borders of Beckenham and West Wickham. The subject property comprises a large pavilion and caretaker’s flat (both in need of refurbishment), parking for c.50 vehicles and c.7 acres of sports fields.

Our marketing strategies typically generate upwards of 50 property-specific enquiries, but in this case interest was unprecedented; with almost 200 enquiries received. The viewing days proved just as popular, with more than 100 different parties attending across four viewings.

Unsurprisingly a host of offers were forthcoming, and for a variety of purposes. Our clients’ distinct preference was for an unconditional sale, and to a buyer intending to maintain the use of the property as a sports facility. Whilst potentially higher offers were dismissed, our clients were delighted to complete a sale to a local football club at more than 70% over the guide, and twice their book value.

We’re vastly experienced in the sale of properties where the requirements of the Charities Act have to be followed, and would be delighted to hear from any organisations with surplus property to sell anywhere in Southern England.

GROVE PARK SE12 Our clients in this case acquired the property with every intention of undertaking its redevelopment themselves. They discharged conditions, demolished the derelict bungalow that previously sat on the plot and even paid the CIL bill. Their circumstances changed though, and our development team was appointed to manage the sale.

Grove Park is in the heart of our patch, and the site had an extant consent for a four storey block comprising 5 spacious self-contained apartments. Our New Homes team have recently sold out two similar sites less than half a mile away, so we had our finger on the pulse in terms of values. Consented sites remain in high demand and we have over 17,000 buyers on our database, so what could possibly go wrong!?

Nothing of course! Our marketing attracted strong interest, and we quickly went under offer at a premium price. We had the momentum to push the preferred buyer to exchange contracts promptly, and he duly obliged in less than 10 days. Completion took place without a hitch at £790,000; reflecting a residual land value of 40% of the GDV. We’re confident that no other agent has sold more development sites in South London than us. We’ve been the market leaders for over 20 years, so if you have a site to sell and want to achieve the best price please get in touch.

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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KESTON BR2

BROCKLEY SE4

Redundant former general store with residential upper parts and rear storage. Sold freehold, with full vacant possession to a local investor at £380,000.

Smart freehold investment comprising E class unit let on a new lease at £15,000pax, and an upper 3 bedroom flat subject to a regulated tenancy.

Sold to a private investor for £456,000.

CAMBERWELL SE5

BROCKLEY SE4

Attractive former bank chambers previously occupied by solicitors.

We assigned the remainder of a lease at £45,000pax to an artisan delicatessen with first floor co-working space.

Semi-derelict corner building loosely comprising a shop and flat. Negative pre-app for development, but proved very popular in the market. Sold for £750,000 off a guide of £450,000!!

BLACKHEATH SE3

THAMESMEAD SE28

Self-contained office suite in the heart of Blackheath Village. Approx. 750 sqft with private kitchen, toilet and shower, the property was let for an institutional client for 5 years on IRI terms at £15,000pax.

Industrial building comprising 10,000 sqft of warehousing, 1,500 sqft of offices and a 10,000 sqft yard. Let on long FRI terms to a wholesale business at £85,000pax.

KENNINGTON SE11

BRIXTON SW2

Self-contained office building comprising circa 5,000 sqft over two floors.

Let to a digital marketing agency for 5 years at £75,000pax with a break and review at year 3.

Bijou commercial unit with E class use just a short hop from Brixton Station.

Measuring just 190 sqft, the space was quickly let to a hair salon for 3 years at £12,000pax.

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

Daniel Dennis Commercial & Development Agency

Natasha Windibank Junior Administrator

Lily Whitby Senior Secretary

Could This Be You? We are now recruiting across the south east.

If you are interested in joining our team, please contact Jeff East on 020 8315 5454.

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