Tellon Capital has secured the sale and forward funding of its Bargate Quarter Build to Rent scheme in Southampton for £139m in a deal with Legal & General arranged by Colliers. Macfarlanes advised Legal & General on the acquisition and forward funding.
The Bargate Quarter site is located in the historic quarter of Southampton’s city centre and overlooks the castle and city walls. The development is built around Southampton’s city walls and the Bargate, a 12th century gatehouse.
“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.”
James Burchell, Partner, Tellon Capital
The scheme will deliver 519 residential apartments across buildings ranging from four to 12-storeys. There will be a further 9,120 sq ft of resident amenities, 54 parking spaces, 348 cycle spaces 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. Tellon Capital expects Bargate Quarter to be completed by late 2024 or early 2025.
“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.”
Erica D’Souza, Associate Director in the Build to Rent team, Colliers
The Macfarlanes team who advised Legal & General was led by real estate partner Anthony Burnett Scott and construction partner Angus Dawson – with assistance from real estate solicitors Elizabeth Fielding and Erin Gilliland, and construction solicitor Louisa McMurdo. Tax advice came from senior counsel Kirsten Prichard Jones.
“We are pleased to have advised Legal & General on the purchase and forward funding of this fantastic scheme in a challenging economic period.”
Anthony Burnett Scott, Real Estate Partner, Macfarlanes
