Major Southampton development site aquired
A 145,544 sq ft private rental sector residential development site in a "prime" location in Southampton has been acquired.
Rockspring Property Investment Managers, in conjunction with joint venture partner Atlas Residential, has purchased the site from Southampton City Council for an undisclosed sum.
The development will include 211 one and two-bedroom apartments and is within walking distance of the leisure and retail areas of the marina and Oxford Street.
The total development costs of the project are estimated to be £36m and the development will be constructed in several phases over the next two years, with the first phase completing in the fourth quarter of 2017. The contracted developer, Hampshire & Regional, is due to start on site immediately.
This is Rockpsring's first move into the private rental sector and Atlas' first venture within the UK.
Eric Linden, European director at Rockspring, said: "As institutional demand for the UK's private rented sector continues to gain momentum, this acquisition, which we believe has excellent macro and micro market fundamentals, provides a strong opportunity to provide long term rental income and stable yields for our investors and clients.
"Furthermore, as the Solent continues to gain traction as one of the leading investment destinations within the UK, with a 43 per cent increase in residential property values predicted by 2019, we believe we are well positioned to capitalise from the growing population and subsequent economic growth."
Atlas UK managing director Jonathan Ivory added: "We are very enthusiastic about entering the UK market and adding Southampton to Atlas' existing residential management platform."
Source: Insider Media