Member Article

Leeds-based Citivale signs £50 million joint venture deal

Citivale, the Leeds-based property investment and asset management company, has signed a £50 million joint venture agreement with developers and investors Lumina Real Estate Capital.

The joint venture has created a platform to acquire industrial properties across the United Kingdom.

The collaboration will be known as LC Industrial and involves an initial investment target of £50 million, focusing on multi-let industrial estates up to £10 million each. Acquisitions will be all-cash deals with any gearing post-completion.

LC Industrial has just completed its first deal, the acquisition of a 110,000 sq ft industrial building in South Elmsall near Wakefield, which was bought for £4.05 million.

A second deal, involving a high-profile enterprise park in the north of England, is under offer for circa £10 million.

James Armstrong, investment director at Lumina, said: “We are delighted to have partnered with Citivale through our LREC Special Situations Fund II. We will be looking to build up the portfolio fairly swiftly, leveraging Citivale’s specialist knowledge and extensive regional network to identify industrial assets which will outperform.”

James Appleton-Metcalfe, the managing director of Citivale, based at 1 City Square, Leeds, added that the newly-created platform was “looking to capitalise on the strong growth in the UK regional economy by buying secondary assets and repositioning them through comprehensive refurbishment, re-gearing leases and minimising voids.

He explained: “We have a strong pipeline of deals already, including a number of off-market transactions. Our combination of local and specialist knowledge, entrepreneurial energy and a professional, diligent and analytical style enables us to locate exactly the kind of industrial property that our joint venture with Lumina is looking to invest in.”

Mr Appleton-Metcalfe, a former property fund manager who formed Citivale in 2010, added: “These are exciting times for Citivale. We have just broken through the £100 million barrier with our portfolio of property under management, which is a significant milestone. We are looking to be fully invested in LC Industrial by Spring next year.

“Our focus is to ensure that every element to achieve out-performance is carefully planned and professionally executed. Our reputation is based on this approach, and helped to seal the deal with Lumina.”

This was posted in Bdaily's Members' News section by Robert Beaumont .