May 6, 2021
Fiera Real Estate (“FRE UK”) and Packaged Living are pleased to announce the acquisition of a 4.8-acre site at Station Square, Southampton with a £200m masterplan GDV. Packaged Living is to undertake a significant mixed-use redevelopment which will comprise Build-to-Rent (“BTR”) units, Grade A offices and a hotel.
The site was purchased through the Fiera Real Estate Opportunity Fund V UK (“FREOF V UK”), the latest fund in FRE UK’s programmatic venture series with CBRE Global Investment Partners (“CBRE GIP”). This is the 9th acquisition for the Fund and brings the total amount committed to over £100m.
The site is prominently situated directly opposite the city’s central railway station and less than 5 minutes’ walk to the city centre. It is a short distance away from a diverse mix of retail, hospitality and cultural uses, and it is ideally located to provide sustainable, urban living, together with suitable employment uses.
The city is the largest unitary authority area on the South Coast of England with a population of c.254,300 people. The population has grown by 13% over the past 15 years and is expected to grow by a further 5% by 2025. The scheme has been designed to meet the pressing need for new homes within the city centre and will help to enhance the quality of life for the growing population in the area. It will also support new jobs and provide vital investment at an important time.
Packaged Living will redevelop the existing retail warehouse site, previously occupied by Toys-R-Us, in four phases which have been designed to take account of the emerging masterplan for the Mayflower Quarter area and will comprise of apartments alongside fantastic amenities, retail, hotel and commercial space as well as vibrant new public realm.
As with all Packaged Living schemes, environmental and social values are at the heart of the design and the scheme will be targeting net zero carbon construction targets and selecting low embodied carbon in specified building targets.
Ed Ellerington, Managing Director of Packaged Living, commented “Redevelopment of the site is at the heart of Southampton’s wider Mayflower masterplan and will create a vibrant and dynamic gateway to the city from the station. Whilst being anchored by BTR residential we are excited to be bringing forward a much wider community with a real sense of place, created through the mix of uses proposed for the site. The purchase represents our third transaction with partners Fiera Real Estate and brings the Packaged Living portfolio to over 2million sq.ft of development and 4,000 homes across the single and multifamily space.”
Chris Button, Value Add Fund Manager at Fiera Real Estate commented “We are really pleased to have secured another key acquisition for FREOF V in partnership with Packaged Living. It is great to be part of Southampton’s regeneration programme and bring much needed housing and commercial space to the city. We are actively seeking similar sites in major urban locations.”