Leeds-based sustainable developer Citu has announced a significant new partnership with The Urban Splash Residential Fund (USRF) and its Investment Adviser SURE Capital Partners, signing a Memorandum of Understanding (MoU) worth £200 million.
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.
“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,” said Citu.
“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.”
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 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.”