Bow Square, Southampton’s largest operational BTR scheme acquired

CompassRock International acquires PATRIZIA’s Bow Square Build to Rent scheme in Southampton.

Bow Square Build to Rent development in Southampton. CompassRock International has acquired the scheme from PATRIZIA | BTR News
Bow Square Build to Rent development in Southampton. CompassRock International has acquired the scheme from PATRIZIA.

CompassRock International acquires PATRIZIA’s Bow Square Build to Rent scheme – a major development in Southampton city centre. Global property consultancy Knight Frank advised on the disposal.

Spanning 190,000 sq ft of residential space, Bow Square comprises 279 units – a mix of 84 one bedroom and 195 two bedroom contemporary apartments. Amenities include a resident’s lounge, meeting room, a fully equipped gym, yoga studio and courtyard garden. The development will also include 6,000 sq ft of flexible commercial space.

“We are very happy to have secured one of the first ‘value add’ Build to Rent 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.”

David Woodward on behalf of CompassRock International 

The Bow Square development was completed in three phases between 2017 and 2018. The scheme is fully operational, close to 100% occupancy.

The scheme is well located in the heart of Southampton, close to the West Quay shopping centre and the Ocean Village marina.

“Bow Square is an impressive purpose-built, institutional-grade Build to Rent 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 Build to Rent’s enduring appeal.”

Lloyd Wraith, Partner in the Residential Investment team, Knight Frank

Southampton is an affluent but supply-constrained market. According to Knight Frank, there are almost 20,000 PRS households living within the city centre, but only 411 operational Build to Rent apartments – making Build to Rent penetration within the city less than 2%.

With Bow Square representing almost 69% of all Build to Rent in Southampton, occupancy levels since launch have been consistently high, making it a highly attractive asset for investors.

“As one of the early movers into UK Build to Rent 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.”

Antonio Marin-Bataller, Managing Director, Pan-European Residential Transactions, PATRIZIA