Citu and Urban Splash Residential Fund announce £200m partnership
The Urban Splash Residential Fund (USRF), and its Investment Adviser SURE Capital Partners, have entered into a significant new partnership with sustainable developer Citu, signing a Memorandum of Understanding (MoU) worth £200m.
The arrangement gives USRF priority access to Citu's pioneering properties and single family homes across Yorkshire for the next five years, marking a major step forward in the Fund’s expansion.
The strategic partnership – USRF’s second, following a similar agreement with Urban Splash – covers 600 homes with opportunity to grow, and includes an initial purchase of 52 Citu homes within the Climate Innovation District in Leeds and Kelham Central, Sheffield. Both developments follow Citu’s placemaking principles creating resilient, green, mixed-use neighbourhoods of low energy homes, and building through placemaking focused on people and communities.
The homes further diversify USRF's portfolio by adding more sustainable single family homes to its current offering across the UK; Akeel Malik, Partner at SURE Capital Partners 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."
Tom Bloxham MBE, 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, Jonathan and the 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.”
Yorkshire-born Citu is renowned for its innovative and eco-conscious developments across the UK, creating homes that work to Passivhaus principles, making them approximately 75% more energy efficient than a traditional home in the UK. Citu’s homes are also manufactured locally in its Yorkshire factory using modern methods of construction (MMC) that substantially lower carbon emissions with an emphasis on quality and assurance.
The company is redefining urban living in Yorkshire through innovation and sustainability. With a commitment to creating homes and communities which are designed beautifully, are environmentally responsible and socially vibrant. Diversifying the tenures available in these places and providing a quality rental offering in an exciting next step in Citu’s journey as Jonathan Wilson, Managing Director at Citu, explained: "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."
Citu is passionate about building and place sustainability. The deal will help Citu, a growing Yorkshire SME, further expand its reach while giving USRF the opportunity to offer sustainable living solutions to families across the county.
Established in 2017, USRF has developed a market-leading experience that actively engages local communities. The Fund offers initiatives including 100% green energy as standard and a community platform called Ark offers a resident app with local business discounts.
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