Joint venture to transform Southampton's 4.6-acre Toys R Us site.

Aviva Capital Partners has teamed up with Southampton City Council and the University of Southampton to form a new vehicle, WBS Growth Partnership LLP, which has acquired the vacant former Toys R Us site beside Southampton Central station. The partners say the 4.6-acre plot will be developed as a mixed-use neighbourhood anchored on innovation, education, homes and workspace.

The site has stood empty since 2018 and occupies a strategic position within the council’s wider West Bay regeneration area and the city’s Growth and Prosperity agenda. The joint venture intends to move quickly to assemble a masterplan that balances public realm, commercial floorspace linked to the university, and new residential supply targeted at a range of tenures.

David Epstein, Managing Director at Aviva Capital Partners, described the deal as an example of institutional capital partnering with civic bodies to unlock brownfield assets. He said the project will support local jobs, foster enterprise near the transport hub and create long-term civic value while aligning with Aviva’s urban regeneration remit.

Councillor Alex Winning, Leader of Southampton City Council, framed the acquisition as a practical step to end a prolonged vacancy at a prominent city gateway. The council highlighted the potential to deliver new homes, jobs and public spaces and to connect development outcomes to its Renaissance Vision for the city centre.

Professor Mark E. Smith, Vice‑Chancellor of the University of Southampton, said the partnership will prioritise an innovation zone to strengthen links between research, spin‑outs and local employers. The university’s involvement is intended to help programme uses that support scale‑up activity and skills development in the city.

The JV has appointed developer and delivery specialist Stories as development manager. Stories — known for working on complex public‑private regeneration projects, including major urban transformations such as King’s Cross — will help convert the city’s strategic vision into an investable delivery plan and test options including temporary meanwhile uses or demolition in 2026 as designs are refined.

Institutional interest in city centre brownfield regeneration remains strong across the UK as investors look for long‑duration, ESG‑aligned real assets that can combine rent roll, capital growth and social impact. For Southampton, a mixed‑use scheme adjacent to a mainline rail hub could increase footfall, lift commercial rents in nearby office and lab space and supply several hundred homes depending on final density and tenure mix.

While no financial terms were disclosed, the transaction underlines an ongoing trend: local authorities and anchor institutions increasingly form partnerships with long‑term capital providers to de‑risk delivery and steer development outcomes. If WBS Growth Partnership LLP proceeds on schedule, the site will become a test case for integrating university-led innovation space into municipal regeneration plans.