CompassRock International has purchased the Bow Square BTR development in Southampton from global real asset investor PATRIZIA for an undisclosed price.
Bow Square offers 279 one- and two-bedroom apartments in addition to extensive onside amenities, including a gym, yoga studio, resident’s lounge, courtyard garden and 6,000 sq ft of flexible commercial space.
The scheme, which was completed in three phases between 2018 and 2018, is close to 100% occupancy.
David Woodward, on behalf of CompassRock International said: “We are very happy to have secured one of the first ‘value add’ BTR investments in the UK. We will be leveraging deep experience in this sector from the US as well as our asset and property management experience from the UK to make improvements to this asset and bring a very high level of customer service to our residents.”
Antonio Marin-Bataller, managing director, pan-European residential transactions at PATRIZIA, added: “As one of the early movers into UK BTR with our acquisition of the Bow Square site in 2015, our strategic disposal of the asset completes a successful full investment cycle, delivering strong returns for investors and crystallising the performance for one of our flagship value-add funds. Having invested in the asset from development through to disposal, we look forward to capitalising on similar opportunities in the UK living sector and leveraging our expertise in creating significant value for clients.”
Lloyd Wraith, a partner in the residential investment team at Knight Frank, who advised on the disposal, said: “Bow Square is an impressive purpose-built, institutional-grade BTR asset; to see a stabilised asset of this quality and scale come to market is rare, and we are delighted to have advised PATRIZIA on the disposal. Despite significant macroeconomic headwinds and severe fiscal tightening, competition between global investors was fierce highlighting BTR’s enduring appeal.”
