Asset and property management service provider CompassRock International has demonstrated how to effectively execute a 'value-add' strategy for a UK Build to Rent (BTR) development. This approach has been successfully implemented at Market Quarter,—formerly known as 'Bow Square'—in Southampton, a property that CompassRock owns and manages, where refurbishments and upgrades are now complete and fully operational.
Advised by leading Living Sector Consultancy, Global Apartment Advisors (GAA), CompassRock’s strategy included implementing just over £3m of capital works to give the BTR property and its residents a new lease of life.
Market Quarter originally launched in 2017. Then named Bow Square, the BTR development offered 279 one- and two-bedroom apartments in central Southampton. Shared amenities included a gym, residents’ lounge and communal garden.
By early 2023, when CompassRock International acquired the property, the shared amenities were tired and in need of attention, as were many individual apartments. By leveraging GAA’s investment analysis, market data and insights, and design knowledge, CompassRock set out to add value to the site through a six-point strategy which included a focus on refurbishment, reimagined spaces, residents and more. The approach led to significant improvement in the homes and amenities, elevating expectations and enjoyment of Market Quarter for both residents as well as the staff who work there.
ESG considerations played a central role in the value-add strategy, aimed at future-proofing the asset while driving positive environmental and social impact. Engaging residents was essential to ensure the plans aligned with their needs and expectations. With guidance from GAA, CompassRock launched a resident survey within the first week of taking over and also leveraged an innovative neurotech platform to gain in-depth insights into residents' unfiltered views on sustainability and wellbeing, and to pinpoint actionable areas for improvement.
As a result, the management team introduced a new events programme designed to foster social connections and strengthen the community. They also revisited the supply chain, integrating stronger ESG criteria into procurement decisions. Given the rising public focus on governance in residential health and safety, management placed an increased emphasis on fire safety and adherence to best practices.
“Enhancing the quality of the living experience on offer at Market Quarter was the cornerstone of our strategy. Applying GAA benchmarks and advice helped the CompassRock team determine the right standards for the physical condition of the building, as well as supporting residents and staff to feel more connected and engaged with the property.”
David Woodward, CEO, Global Apartment Advisors (GAA)
This value-add strategy has led to a substantial increase in Market Quarter's value, surpassing the targets set in the original business plan. The comprehensive six-point strategy included:
Refurbishment
The capital expenditure focused on refurbishing Market Quarter’s gym, residents’ lounge, apartments, corridors and car park. The comprehensive approach also included the installation of a new fob security system and the upgrading of the staff office and welfare areas.
Reimagined spaces
GAA assessed all amenity and ancillary spaces within the scheme, identifying a vacant 6,500 sq ft ground-floor retail unit as a prime candidate for conversion into a co-working space, based on market analysis and resident feedback. To retain flexibility, 2,500 sq ft was reserved for a small corner retail unit, allowing CompassRock to create a 4,000 sq ft co-working lounge and events area exclusively for Market Quarter residents, enhanced with upgraded high-speed broadband.
The previously neglected outdoor yard has been transformed into a lively community garden featuring multiple areas for relaxation, BBQs, and play. A newly added dog park offers a secure, dedicated space for pets, ensuring cleanliness and safety in the children's play areas.
Resident engagement
Consistent communication ensured that residents had a voice in the Market Quarter refurbishment. Tools like Aon’s advanced neurotech survey platform, Reflection, along with traditional surveys, newsletters, regular property updates, and a calendar of resident events all fostered increased engagement throughout the project.
“Enhancing the value of BTR assets involves considering the complete lifestyle experience provided, along with the specific building features that support it. Engaging both residents and staff is essential for a successful value-add strategy. Simply spending capital isn’t enough—you need to ensure investments are directed in the most impactful way."
Dominic Martin, MD, CompassRock International
