Tellon Capital has secured the sale and forward funding of its Bargate Quarter build to rent scheme in Southampton for £139million in a deal with Legal & General arranged by Colliers.
The site is located in the historic quarter of Southampton’s city centre overlooking the castle and city walls and will deliver 519 apartments alongside 9,120 sq ft of resident amenities and 2,515 sq m of commercial space. In response to the pandemic, planning consent was amended earlier this year to reflect the new ways that people live, work and socialise.
James Burchell, partner at Tellon Capital, said: “We are delighted with our new partnership with Legal & General and to start work on the Bargate Quarter rejuvenation. Once this scheme is completed, we believe this will provide an exciting new chapter for one of the most historic parts of Southampton.
“Our development will seek to improve the setting of The Bargate and city walls and provide retail units along with much-needed new housing in a highly sustainable location. Crucially, our scheme also responds to the changing world created by the pandemic, to ensure we have a scheme that respects the past but is also fit for the future.”
Erica D’Souza, associate director in the Build to Rent team at Colliers added: “Southampton continues to draw investor interest because rental demand is running well ahead of the housing supply. Bargate Quarter will provide residents with great access to shops, restaurants and entertainment venues, which will be especially attractive to renters looking for a good work-life balance.
“Significant efforts have been made to respect the site’s history while designing this development and creating a great place for people to live, play and socialise in the heart of Southampton.”
Tellon Capital expects the scheme to be completed by late 2024 or early 2025.