Citu and Splash fund tie up £200m partnership
The sustainability-led firm has signed a memorandum of understanding with Urban Splash Residential Fund and SURE Capital Partners, covering an initial 600 homes across its development portfolio.
The partnership marks an important marker in Citu’s growth plan to bring “sustainable, future facing places and homes can be accessible for all” forward across Yorkshire.
This is USRF’s second partnership, following a similar agreement with Urban Splash.
The MoU covers 600 homes with opportunity to grow, and includes an initial purchase of 52 Citu homes within Leeds’ Climate Innovation District, and at Kelham Central, Sheffield.
Yorkshire-born Citu creates homes that work to Passivhaus principles, making them approximately 75% more energy efficient than a traditional home in the UK. The firm manufactures its buildings in its Yorkshire factory.
Jonathan Wilson, managing director at Citu, said: “This partnership marks a significant step forward for Citu, and we are delighted 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 partners said the deal will help SME Citu further expand its reach while giving USRF the opportunity to offer sustainable living solutions to families across the county.
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 explained: “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.”
SURE (Sustainable Urban Real Estate) Capital Partners is an entity set up to connect capital with “best in class” Developers. Urban Splash chair Tom Bloxham is a partner. He said: “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.”
USRF was established in 2017.
This summer, Citu secured consent for the first 360-home phase at its Attercliffe Waterside project in Sheffield, a 23-acre brownfield scheme. The developer started the 51-home Stãll in Kirkstall, Leeds last year.
