Developer, Tellon Capital, and investor, Legal & General, recently announced the completion of funding.
The transaction is on a forward funding basis to one of Europe’s largest asset managers, Legal & General Investment Management (LGIM) on behalf of its Legal & General Retirement (LGR) business. Legal & General will own and operate the completed scheme.
The development is built around the City Walls and The Bargate, a 12th Century gatehouse to historic Southampton. It will provide 519 much-needed new homes comprising a mix of studio, 1, 2 and 3 bed units, along with 2,515 square metres of ground floor commercial space.
Councillor Jeremy Moulton, Deputy Leader and Cabinet Member for Growth commented: "This is fantastic news for the Bargate Quarter, Tellon Capital and for Southampton. The development of the £132m scheme for the five-acre city centre site has been much anticipated and will transform this area, shining a new light on our significant local history and landmarks.
-- Advertisement --
"I look forward to seeing this new vision for the Bargate Quarter come to life over the next three years with hundreds of new city centre homes, new retail space, and a new linear park running alongside our medieval town walls."
Tellon Capital expects the Bargate Quarter scheme to be completed by late 2024 or early 2025.
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 regeneration. 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.
"We would like to thank residents and stakeholders for their continued support and we're looking forward to delivering a high-quality scheme that benefits the whole city."
