During the final quarter of 2013 our development team acquired the redundant, former Rising Sun Public House on Upper Elmers End Road on behalf of retained clients McCullochs Homes.
Following the acquisition McCullochs Homes successfully set about obtaining planning permission for the demolition of the former public house and the erection of 16 apartments and 4,359 sqft of ground floor A1 commercial space with associated residential and commercial car parking. The residential element of the development was pre-sold to Moat Housing Association whilst our commercial team negotiated the pre-letting of the retail unit to Co-Op (Co-Operative Food Limited) at what represents a very robust initial headline rent of £100,000 / £23 / sqft per annum on a straight 15 year FRI lease.
Not only did we manage to negotiate a fantastic deal for our client in terms of the robust headline rent but we also found room for an extra £50,000 premium to be paid to the owner by Co-Op upon completion of the lease! During the first quarter of 2016 as completion of the build neared, our investment team were then drafted back in to the fray in order to secure a sale of the investment.
Following a thorough marketing campaign and a number of offers we managed to conclude a sale to a private investor at £1,750,000 reflecting a NIY of 5.38%.Our expertise covers a wide cross section of the market, and we often find that a single property requires us to deploy a variety of different skillsets in order to maximise value. Acorn's involvement in this property spanned 3 years and allowed us to offer not only expert advice but also effective results across our holy trinity of development, commercial and investment agency disciplines.