Developer strikes £200m deal with Urban Splash Residential Fund
Leeds-based developer, Citu, has revealed a new partnership with The Urban Splash Residential Fund (USRF), and its Investment Adviser SURE Capital Partners, signing a Memorandum of Understanding (MoU) worth £200m.
This is USRF’s second partnership, following a similar agreement with regeneration company Urban Splash.
The memorandum of understanding covers 600 homes with opportunity to grow, and includes an initial purchase of 52 Citu homes within the Climate Innovation District, Leeds and Kelham Central, Sheffield.
Citu focuses on creating homes that work to Passivhaus principles, making them about 75% more energy efficient than a traditional home in the UK.
Its homes are manufactured locally in its Yorkshire factory, using modern methods of construction (MMC) that substantially lower carbon emissions.
Jonathan Wilson, managing director, said: “This partnership marks a significant step forward for Citu, and we are happy to have found an aligned partner with the right expertise and ambitions to join us on this journey.
“Our growth strategy focuses on creating exceptional sustainable places with a variety of tenures, and we’re excited to introduce a rental offering to our developments both now and in the future, with a partner who shares our vision and responsibility.
“This collaboration enables us to move ahead with confidence, and we look forward to the next steps.”
The move diversifies USRF’s portfolio, adding single-family homes to its offering, as well as expanding its footprint in Yorkshire following its acquisition of East Street Mills in Leeds last year.
Akeel Malik, partner at SURE Capital, said: “This deal connects capital with regeneration, allowing us to play a pivotal role in creating vibrant new neighbourhoods.
“Leeds and Sheffield are exciting, transformative cities where people want to live, work, and play, and we’re proud to help drive that change.
“Our mission is to cultivate a portfolio of design-led homes for renters – an approach that aligns perfectly with Citu. We have found the ideal product in their award-winning homes and communities.”
Tom Bloxham, also partner at SURE, added: “SURE has investors ready to commit to design-led homes. It’s a concept that’s been proven with Urban Splash and now with Citu.
“I have long been an admirer of the regeneration work undertaken by Chris and Jonathan and team at Citu and was very pleased to see this deal close.
“This is another example of how SURE Capital is bringing UK and international institutional capital to work supporting the very best UK SME developers like CITU, Urban Splash and Javelin Block – with whom we completed a deal last year in Birmingham.
“This deal will both bring good returns to our investors and help fund much needed new sustainable homes and regeneration in UK regions.”
