TT Group sells former BT office with resi conversion scope
A former BT office in Southampton has changed hands with a resolution to grant permission for a near-£20m residential conversion.
A consortium comprising Rengen Developments, Lainston Securities and Altus Investment has bought the four-storey Friary House from TT Group for £2.7m.
The 51,596 sq ft block has planning permission for 46 flats, but also has a resolution to grant permission for a larger, 88-flat scheme with a development value of £19.3m.
A former BT office in Southampton has changed hands with a resolution to grant permission for a near-£20m residential conversion.
A consortium comprising Rengen Developments, Lainston Securities and Altus Investment has bought the four-storey Friary House from TT Group for £2.7m.
The 51,596 sq ft block has planning permission for 46 flats, but also has a resolution to grant permission for a larger, 88-flat scheme with a development value of £19.3m.
The latter scheme was withdrawn by TT Group following the council’s resolution to approve, but marketing documents from Savills said the resolution remains in place.
Friary House is based in the south of the city centre, with the Grade II* listed Medieval Town Wall running along its boundary.
It was one of a portfolio of 6,700 properties acquired by TT Group from BT in 2001 as part of a £2.38bn deal.
Viability documents for the now withdrawn 88-flat scheme said the site is “in need of a comprehensive refurbishment to upgrade it to modern standards, including full M and E replacement, replacement of heating and cooling and a full cosmetic refurb”.
It added: “The property lies in a broadly residential area away from the main office locations that are located in Ocean Village and London Road. It remains unclear how much demand there would be for a significant amount of office space in this location.
“We have made an allowance for these factors within our analysis of the comparables.”
TT Group, formerly known as Telereal Trillium, sold the freehold for the site with vacant possession.
TT Group development and disposals manager Annabelle Stannard said: “Following BT’s recent vacation and securing a permitted development rights in 2021, we are pleased to announce its sale.
“This disposal aligns with our long-term strategy to repurpose and upgrade assets that add renewed value to the towns and cities they are located in.
“We look forward to the purchaser moving forward with plans for reactivating this vacant and disused site.”
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Photo © TT Group
