The RO have been able to compete the purchase of West Park House. The building has been purchased from Lanyon Quay Ltd and it is thought that the total consideration of the site is £4 million. West Park House is in Southampton and has a good location in the City Centre. The acquisition price of £4 million is a reflection of the 7.6% initial net yield.
This acquisition is the second of its kind for the RO in Southampton. Last year the company bought Waterside Place, which is on the harbour front and is only a short walk from West Quay. The building at Waterside Place is adjacent to the Royal Pier, an area that has been identified as a regeneration and redevelopment opportunity. It is thought that this acquisition and the new purchase of West Park House are in good locations to benefit from the regeneration in the area.
West Park House can be found on the corner of Cumberland Place and Bedford Place. This site is the situated in the central business district and also looks over Watts Park from the front of the building. The acquisitions have been made through RO Real Estate, which is the RO’s wholly owned subsidiary. RO Real Estate works to acquire and develop property for the larger RO Group. West Park House was originally built in 1996 and covers 1,630.43 sq. m. which is spread across a ground and three upper storeys. The building offers a secure basement car park that has 21 spaces.
CBRE has conducted research that shows the City centre availability in Southampton stands at 7%. This figure is low in comparison to cities of similar sizes. The 7% availability equates to around 300,000 sq. ft. or covers one year’s office supply. West Park House is in a good area to benefit from the trend of office availability. The building is currently let to a leading local solicitor firm, Paris Smith. The Health Insurance Group are also tenants of the building.