10/04/2017
Acquisition of West Park House, Cumberland Place for £4 million
The RO announces that they have completed the purchase of
West Park House in Southampton from Lanyon Quay Ltd for a total consideration
of £4 million. West Park House occupies a prominent location within the City
Centre, on the corner of Cumberland Place and Bedford Place, in the established
central business district and overlooking Watts Park to the front.
This is the second major acquisition the RO has made in
Southampton following the purchase last year of Waterside Place located on the
harbour front and a short walk from West Quay, adjacent to Royal Pier which has
been earmarked for significant redevelopment and regeneration. Both
acquisitions were made through the RO’s wholly owned subsidiary RO Real Estate,
which acquires and develops commercial property assets on behalf of the Group.
Recent research by CBRE reveals City centre availability
currently stands at 7%, or 300,000 sq ft, which equates to just one year’s
office supply which is low for a commercial centre the size of Southampton.
West Park House is well situated to capitalise on this trend and is currently
let to a leading firm of local solicitors, Paris Smith, as well as specialist
advisory firm The Health Insurance Group.
Originally constructed in 1996, West Park House is arranged
over 1,630.43 sq m (17,550 sq ft) over ground and three upper floors with a
secure basement car park with 21 spaces. The £4 million acquisition price
reflects a net initial yield of 7.6%. RO
were advised by CBRE.
Commenting on the acquisition Nick Moore, Senior Investment
Manager, RO Real Estate said:
"The acquisition of West Park House is an excellent
example of the type of investment opportunity we are looking for in the £2 to
£7 million acquisition size. Moreover it
highlights our corporate philosophy of being in business to do business and
shows the value of establishing committed and enduring relationships with local
agents who have strong local knowledge.
The property has prime asset fundamentals providing good
locational and income diversification to our other Southampton asset. This is a City which is a recognised strong
performer and should deliver strong rental growth. Hampshire and its
neighbouring counties remain an important geographic focus for the wider RO
Group. As well as commercial property we
also have a number of residential developments through our sister company Metis
Homes."
RO Real Estate and its various sister companies are wholly
owned subsidiaries of the RO which is a family owned group of companies
established in 1932. The RO has always
invested in a diverse range of interests which today embraces commercial
property, housebuilding, holiday lodges and financial services.
RO Real Estate, the commercial property division, has built
over 1.1 million sq ft to date and currently manages over 1m sq ft of office,
industrial, retail and hotel accommodation.
All acquisitions are funded through its existing cash resources, meaning
that it is able to move quickly if the appropriate investment criteria are met.
- Ends -
For further information
RO Real Estate
020 7025 1780
John West
Belvedere Communications
020 3735 8896
Notes to Editor
RO Real Estate is a privately-owned company specialising in
commercial property investment and development in the south east, with a
portfolio of more than £80 million of properties. It is the property division
of the RO Group, which was founded in 1932 by Stanley Graham Rowlandson. His
innovative attitude to business has been carried forward by his son, and
current Chairman, Richard Rowlandson, who used the Group’s property and
retailing experience to develop over 40 neighbourhood centres in the 1980s and
90s and 30 Pegasus Retirement Homes in the 2000s. Now Graham’s grandson and
current Group Managing Director, Edward Rowlandson has grasped the mantle
overseeing the Group’s investment in various entrepreneurial ventures which in
addition to commercial property investment include residential development and
high quality holiday lodge parks.
