Citivale, the Yorkshire-based company strikes deal with US real estate investor
The booming logistics and distribution sector in the UK will see a new entrant in the form of Investcorp, one of the biggest international real estate investors in the US. Investcorp has partnered with the Yorkshire-based Citivale to manage and develop a multi-million pound real estate portfolio. The US based property investor struck the deal with Citivale under its plans to move beyond the domestic market.
As part of the process, the real estate giant has already acquired industrial properties across the UK cities of Batley, South Elmsall, Liverpool, Warrington, High Wycombe, Glasgow and Edinburgh which include two in Yorkshire from LC Industrial for £40m which are managed by Citivale under the LC Industrial partnership with LRE.
The managing director of Citivale, James Appleton-Metcalfe termed the deal exciting and said that it represents a successful exit from Citivale’s partnership with LRE Capital. According to James, the company has maximized the value of all the seven properties and that the seven properties will undergo comprehensive renovation and prepared for leasing. He cited the approach of the Company for highly successful partnership with LRE Capital. Citivale manages the Humber Enterprise Park at Brough, which offers 1.3 million sq. ft. high-quality office and industrial space as well as 20 acres of development land.
A sum of £6million has been regenerated for the regeneration of the site (and a further £1.2 million set aside for further development) which forms part of the original LC Industrial portfolio and continues to be with Citivale/LRE Capital. The site is expected to be operational after three years. Once developed, it will support 1,600 sustainable jobs. Citivale will continue to manage the industrial park and seek new tenants after it is developed. It plans to develop unused land and renovate old buildings to make it more attractive and feasible for businesses and industry.
Meanwhile, Citivale is in partnership with a number of other successful developers to make its presence more strongly. Some of the firms with which the Yorkshire-based company is collaborating with, include names such as Peveril Securities, TH Real Estate and the Sabal Financial Group. These projects are spread across the UK and its latest venture with Investcorp adds to its business strategy to expand.
Investcorp is also eyeing the European market as it plans to create a portfolio of income-generating assets for its investors and the deal with the Citivale is a step in the direction.
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