Marketing Report 69A Albert Road, Bromley Kent, Br2 9Pz
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MARKETING REPORT 69A ALBERT ROAD, BROMLEY KENT, BR2 9PZ MARCH 2020 PRODUCED BY: THE ACORN GROUP ABOUT THE CONTENTS GROUP The Acorn Group A brief introduction Founded in 1984 as a one-office estate agent, The Acorn Group is now one of the largest independent estate agency networks in the UK. The Acorn Group incorporates Acorn Estate Agency, Langford Russell Estate Agency, John Payne Estate Agency, Unique Properties, Start Mortgages and MAP Chartered Surveyors. The Acorn Group remains privately owned, employs more than 400 staff, and has over 35 offices and divisions. We cover all aspects of the property industry from Residential Sales and Lettings through to New Homes Sales, Property Management, Estate Management, Mortgages, Conveyancing and Commercial and Development Consultancy. Acorn divisions and subsidiaries Residential Sales Private Rented Sector Residential Lettings Conveyancing New Homes MAP Chartered Surveyors Property Management Commercial, Investment & Development Estate Management Corporate Sales Start Financial Services Corporate Landlords John Payne PR Division Langford Russell HR Division Unique Start Inventory Services Section 1 - Introduction Section 7 - Conculsion Start Lease Extensions Section 2 - The Property Section 8 - Appendices Operating from offices in London Bridge and Bromley, Acorn’s Commercial & Development Division specialises in the sale and letting of commercial properties, and the sale and acquisition of development Section 3 - Location opportunities and investments throughout London and the South East. We also provide asset and equity management services for institutions and private investors. Section 4 - Value Section 5 - Marketing Section 6 - Feedback 2 3 THE INTRODUCTION PROPERTY SECTION 1 SECTION 2 Acorn’s Commercial & Development Division has been instructed by Lefa Enterprises Ltd to provide a The property comprises a 0.32acre site comprising a single storey office building & storage unit totalling report analysing expressions of interest previously shown in the property at 69a Albert Road, Bromley, c.3, 500sqft, with 7,500sqft of yard space to the west of the buildings. The existing buildings are in poor Kent, BR2 9PZ. condition throughout and there is evidence of abestos (please see Building Condition Report 8.3). In April 2019 we were appointed by the former owners, C. W. Gosling Ltd, to provide advice for the proposed sale of 69a Albert Road. C.W Gosling Ltd had operated their electrical contracting business from the property for over 80 years, but in recent years the property had become unfit for purpose. Over the course of their ownership there had been a notible deteriation in the quality of the accommodation, which would have required them to invest significant financial capital to refurbish & renovate, which they were unable to do. Additionally, access into the site had been an on-going problem as the property is located on a primarily residential street, with a single lane access road into the site. The business required large commercial vehicles to enter and exit the site throughout the day, and this became ever more difficult and inappropriate with the parked cars on Albert Road. We advised C.W. Gosling Ltd to adopt an open marketing campaign which aimed to expose the property to every sector of the market. 4 5 Examples of Marketing LOCATION SECTION 3 The property is located in Chaterton Village, a popular area to the South of Bromley town centre and includes a variety of independent retailers, cafes and restaurants. The property sits between Albert Road & Balfour Road, two quiet residential streets which mainly comprise terraced residential dwellings. Bickley Railway station is located 1 mile away which offers links into Orpington (9mins) Brixton (25mins) and London Victoria (32mins). In terms of major road links, Bromley Common is 0.3miles away and provides a direct route to the A21 (Sevenoaks) and onto the M25. The number of The Acorn Group branches we operates 6 operate around London & premium brands. 25,000 400 32 The South East. Of people looking for property on our database. The number of £1. 26 BILLION Subject Property 404,019 staff within The The amount of property we sold last year. The number of pageviews on websites within The Acorn Group. Acorn Group. 6 7 VALUE MARKETING SECTION 4 SECTION 5 From April 2019 we carried out a comprehensive marketing campaign highlighting the information and details for the property and gave equal opportunity to both commercial and residential occupiers and developers. Our marketing included the following: We advised C.W. Gosling Ltd that the property be marketed with a guide price of £600,000 for the vacant freehold interest. We advised inviting both conditional and unconditional offers. A sales brochure giving all the information interested parties were likely to require. See appendix 8.1. Clearly the property is unusual for the local area, and therefore there are few direct comparables, - Details sent out on our email circular three times to our database which we have built up over many however, in our professional opinion this was a fair and reasonable marketing price conceived to years and contains 15,000 contacts including a broad range of commercial and residential occupiers generate maximum interest and offers. and developers. See appendix 8.5. To follow are similar properties which are broadly comparable which we have sold and which we used - Details placed on our website www.acorngroup.co.uk/commercial. The Acorn Group website receives when considering and advising on the guide price of 69a Albert Road for marketing-: over 1.1million hits per year. See appendix 8.7. -158-160 Ravenscroft Road, Beckenham, BR3 – Exchanged March 2019- Completed June 2019 for - Details were also place other web portals that we use such as EACH (Estate Agents Clearing House) £1,000,000. (Appendix…) and Move Hut. The property was sold to a commercial investor who plans to convert, extend and refurbish the existing - Potential purchasers looking for this type of opportunity contacted / spoken to. buildings for both commecial and residential use. - A series of block viewings were undertaken so that interested parties could inspect the property. Ravenscroft Road is the most direct comparable in terms of use, location and condition. Ravenscroft Road provided c.7,500sqft of office & warehouse space, on a site which measured approx. 7,600sqft. Our marketing strategy is tried and test over many years and is designed to maximise interest. The sale price reflects £133sqft. Our agreed strategy was to ensure that we maximised interest, and exhausted our search for any local, 69a Albert Road is 3,500sqft of office & warehouse space, with a 7,500sqft yard, and at the guide price national, or international operators who would be interested in the property. of £600,000, reflects £130sqft for the existing buildings (£455,000), and this equated to £20sqft for the yard area to the west (£145,000). We advertised the property inviting both conditional and unconditional offers, with unconditional offers guided at £600,000, for the vacant freehold interest. As previously stated, this in our professional In terms of usable space which includes the existing buildings and yard space which totals 10,500sqft, opinion, was a fair and attractive guide price. this reflects a guide price of £57per sqft, which is in attractive guide price, when we consider the sale price of 158-160 Ravenscroft Road in Beckenham calculated to be £133 per sqft. -Albion House, 44a Waldeck Road, Dartford, DA1 - Exchanged & Completed January 2019 for £632,500. (Appendix…) The property was sold to a retailer for continued commercial use (storage and distribution). Albion House comprises a 3,600sqft single storey warehouse, and 3,600sqft courtyard located in Dartford. We marketed this property for both sale and rent, inviting offers in excess of £600,000 for the vacant freehold interest, and £35,000p/a for rent. Whilst commercial sales values in Dartford are typically lower than in Bromely, at a guide price of £600,000, this reflected a guide price of £87per sqft for the entire site. 8 9 FEEDBACK CONCLUSION SECTION 6 SECTION 7 We received 29 enquiries during our marketing campaign. During the marketing, the parties that showed interest in the property were predominantly residential developers. We did receive interest from three commercial operators, although no offers were made, and We carried out 3 block viewings in April and May 2019 for all interested parties to view. The majority of the main reasons for this were; poor condition of the property, inappropriate location for commercial the parties who viewed had the intention of re-developing the property/site for residential. uses and concerns over the impact to the surrounding residential properties. We had 3 commercial operators who viewed the property. Based on the interest and offers we have received from marketing campaigns on similar commercial properties in 2019, it is apparent that residential accommodation would be better suited for Albert We received no offers for the purchase of the property for commercial use. This is not surprising Road when we consider the location, current condition & clear lack of appeal to commercial operators. when we consider the existing buildings required significant capital investment to bring them up to a suitable standard for continued commercial use, with special attention being paid to the storage units’ asbestos roof. The access road into the property is not suitable for larger commercial vehicles.