25 Aug Atlas enters joint venture with Rockspring to acquire development in Southampton, UK
Europe Real Estate, 25 August 2015
Rockspring Property Investment Managers LLP (“Rockspring”), on behalf of a separate account client and in conjunction with its joint venture partner, Atlas Residential (“Atlas”), has purchased a 44,361 m² private rental sector development site in Southampton from Southampton City Council.
Situated in a prime location in Southampton, the development is within walking distance of the popular leisure and retail areas of the marina and Oxford Street, and is set to deliver 211 one and two bedroom high spec apartments. The contracted developer, Hampshire & Regional, is due to start on site immediately. The total development costs of the project are estimated to be €49 mln (£36 mln) and the development will be delivered in several phases over the next two years, with the first phase completing in the fourth quarter of 2017.
The transaction represents both Rockspring’s first move into the private rental sector, and Atlas’ first venture within the UK. Acting as joint venture partner, Atlas Residential has significant experience as one of the largest private rental sector operators in the United States, having owned and managed over 75,000 apartments with a transaction value of over €6 bln (US$7 bln).
Eric Linden, European Director at Rockspring commented:
“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% increase in residential property values predicted by 2019, we believe we are well positioned to capitalise from the growing population and subsequent economic growth.”