Business : Finance & Investment News
Clarion Partners Secures £200m Green NAV Facility with NatWest

Clarion Partners Secures £200m Green NAV Facility with NatWest

Clarion Partners Europe, a leading real estate investment fund manager specialising in European logistics and industrial properties, has partnered with NatWest to secure a £200 million Net Asset Value (NAV) Line facility for one of its co-mingled funds. This fund reports under Article 8 of the Sustainable Finance Disclosure Regulation

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NFB: 'Farmers have our support'

NFB: ‘Farmers have our support’

As the farming industry gets ready to protest changes to agricultural property relief (APR), they can count on construction to understand their concerns. Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “Construction companies are also generational businesses operating on tight margins, uncertain cashflow and aging workforces.

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New Export Guarantee Champions UK Engineering and Design Services

New Export Guarantee Champions UK Engineering and Design Services

UK Export Finance (UKEF), the UK’s export credit agency, has introduced a new guarantee product to help British firms secure international contracts providing engineering, design and technical services. The Early Project Services Guarantee (EPSG) is now available to overseas buyers who choose to use British services firms to scope and

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Landsec Poised to Capitalise on Retail Growth

Landsec Poised to Capitalise on Retail Growth

Landsec has expressed strong confidence in expanding its investment in the retail sector, highlighting plans to deploy further capital in the coming months. The real estate investment trust (REIT) recently strengthened its portfolio with a £120m acquisition of an additional stake in Bluewater, Kent. The company revealed that retail offers

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Leeds on the Rise: Ardent Capital’s £200 Million Build-to-Rent Debut

Leeds on the Rise: Ardent Capital’s £200 Million Build-to-Rent Debut

Ardent Capital Partners has marked its first foray into the UK property market with a landmark £200 million investment in a transformative build-to-rent (BTR) development in Leeds. This ambitious project is a significant milestone in the city’s regeneration, reaffirming Leeds as a hotspot for modern urban living. Set on the

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£200m Partnership Fuels Sustainable Housing Growth in Yorkshire

£200m Partnership Fuels Sustainable Housing Growth in Yorkshire

The Urban Splash Residential Fund (USRF), advised by SURE Capital Partners, has announced a significant new partnership with sustainable developer Citu, formalised through a £200 million Memorandum of Understanding (MoU). This five-year agreement grants USRF priority access to Citu’s pioneering properties, which include single-family homes across Yorkshire, marking a major

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Citu and Urban Splash residential fund (usrf) announce £200m partnership across Citu’s low carbon development portfolio

Citu and Urban Splash residential fund (usrf) announce £200m partnership across Citu’s low carbon development portfolio

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

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Latest Issue
Issue 323 : Dec 2024

Business : Finance & Investment News

Clarion Partners Secures £200m Green NAV Facility with NatWest

Clarion Partners Secures £200m Green NAV Facility with NatWest

Clarion Partners Europe, a leading real estate investment fund manager specialising in European logistics and industrial properties, has partnered with NatWest to secure a £200 million Net Asset Value (NAV) Line facility for one of its co-mingled funds. This fund reports under Article 8 of the Sustainable Finance Disclosure Regulation (SFDR), marking the first collaboration between the two organisations. This NAV facility is also a landmark transaction, as it includes green loan provisions aligned with the Loan Market Association’s (LMA) Green Loan Principles. This is the first such agreement between NatWest and Clarion Partners Europe, setting a precedent for green financing in real estate. The funds will support a range of sustainable initiatives, including refinancing existing properties, implementing green capital expenditure (capex) programmes, and acquiring assets that either meet or aim to achieve specific building energy certifications. Florina Capraru, Acquisitions Director at Clarion Partners Europe, commented:“Integrating green loan provisions into the NAV facility is a natural progression in our sustainability and value creation strategy. It aligns with our mission to future-proof our portfolio of mission-critical assets. NatWest has been an outstanding partner, demonstrating a deep understanding of the decarbonisation challenges facing the real estate sector. Their alignment with our sustainability ethos reinforces the idea that sustainability acts as both a risk mitigant and a driver of value.” Dan Kumagai, Head of Asset-Backed Funds Financing at NatWest, added:“This innovative green structure is a significant development for the NAV line product. By supporting Clarion Partners Europe, we hope to encourage other leading investors to take pivotal roles in decarbonisation and broader responsible investment.” Rahel Haque, Climate & ESG Capital Markets Lead for Private Finance at NatWest, shared her thoughts:“We are thrilled to have supported Clarion Partners Europe with their inaugural Green NAV facility. This funding will enable them to acquire additional logistics assets and enhance energy efficiency across their portfolio. We look forward to deepening our partnership as we work together towards decarbonising the built environment.” This collaboration not only strengthens the relationship between NatWest and Clarion Partners Europe but also underscores their shared commitment to sustainability and responsible investment in real estate. Building, Design & Construction Magazine | The Choice of Industry Professionals

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NFB: 'Farmers have our support'

NFB: ‘Farmers have our support’

As the farming industry gets ready to protest changes to agricultural property relief (APR), they can count on construction to understand their concerns. Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “Construction companies are also generational businesses operating on tight margins, uncertain cashflow and aging workforces. We therefore stand behind farmers who oppose this budget decision because the growth-hindering, anti-business tax changes also apply to our industry. With so many construction companies being generational, struggling with regulatory burdens and a fifth of workers being over fifty years old, early conversations with members have highlighted that some will consider closing their businesses, changing operations, or cutting back the size of their operations. This means fewer directly employed workers and more sub-contracting, so greater pressure on state pensions and public services. A reduction in new learners and reskilling, as SMEs train 8 in 10 constriction apprentices. Rural areas disproportionately impacted, as local constructors are often major local employers. Fewer businesses to build our houses, especially council homes that are typically built by SMEs. Less capacity to deliver capital and infrastructure works. And a greater challenge to meet our carbon targets, especially to retrofit our 28 million buildings. Some members said they will sell rather than pass on and while this ensures a future for those businesses it comes with workforce insecurity, a loss of experience and talent, and unless bought by a local person, the loss of a local investor. This Government is at risk of being remembered as the one which closed the businesses who keep us fed and build the homes, roads, rail, commercial premises, renewable energy, transport hubs, schools, hospitals, utility connections, drainage systems, and climate solutions. A rethink is desperately needed.” Building, Design & Construction Magazine | The Choice of Industry Professionals

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New Export Guarantee Champions UK Engineering and Design Services

New Export Guarantee Champions UK Engineering and Design Services

UK Export Finance (UKEF), the UK’s export credit agency, has introduced a new guarantee product to help British firms secure international contracts providing engineering, design and technical services. The Early Project Services Guarantee (EPSG) is now available to overseas buyers who choose to use British services firms to scope and design their projects in the planning phase. The guarantee helps overseas buyers of UK services to access private finance by assuring lenders that they will receive payment, making the UK offer more attractive. Once the project services contract is complete, there is potential for the guaranteed loan to be refinanced alongside financing the wider construction project. The prospect of subsequent finance throughout the life-cycle of projects incentivises overseas buyers to select UK services firms for the early-stage work. Carl Williamson, Director of SME and Trade Finance, UK Export Finance, said: “This new export finance support will give international buyers even more incentive to tap into UK design and engineering expertise. Year-on-year growth in service exports shows that the demand is there for this country’s professional and technical services.”  “The development of our Early Project Services Guarantee is a clear signal of UKEF’s commitment to helping the services sector to maintain its competitive edge and international renown.” The EPSG addresses gaps in market provision for financing the preparatory stages of major projects. It also contributes towards UKEF’s objective of helping a broad range of businesses to export, driving growth across all regions of the UK. This announcement has been made alongside International Trade Week, an annual event run by the Department for Business and Trade which includes a series of virtual and in-person events to advise UK businesses on different ways to reach new international markets. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Supermarket Income REIT Secures £49.7m Huddersfield Sainsbury’s in Strategic Investment

Supermarket Income REIT Secures £49.7m Huddersfield Sainsbury’s in Strategic Investment

Supermarket Income REIT has bolstered its portfolio with the £49.7 million acquisition of a prominent Sainsbury’s supermarket in Huddersfield, West Yorkshire. Spanning 113,348 sq ft, the site includes an omnichannel supermarket and a petrol filling station, occupying an expansive 8.5-acre plot. Sainsbury’s has been a fixture on the site for over three decades, with the current lease offering 11 years of unexpired term and annual inflation-linked rent reviews. In addition to serving in-store shoppers, the site plays a key role in Sainsbury’s online operations, functioning as a fulfilment hub with 12 home delivery vans and click-and-collect services. The acquisition was funded through Supermarket Income REIT’s existing debt facility, bringing the company’s loan-to-value ratio to 39%. The REIT’s portfolio now boasts a weighted average unexpired lease term of 12 years, reflecting its commitment to long-term stability and growth. A Strategic Move for Shareholder ValueBen Green, Principal at Atrato Capital Limited, investment adviser to Supermarket Income REIT, expressed enthusiasm for the acquisition:“We are delighted to add this high-quality UK asset to our portfolio. This acquisition underlines our focus on delivering strong returns and exploring new opportunities to enhance value for Supermarket Income REIT’s shareholders.” This latest investment underscores Supermarket Income REIT’s confidence in the resilience and growth potential of the UK’s grocery sector, solidifying its reputation as a key player in the market. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Landsec Poised to Capitalise on Retail Growth

Landsec Poised to Capitalise on Retail Growth

Landsec has expressed strong confidence in expanding its investment in the retail sector, highlighting plans to deploy further capital in the coming months. The real estate investment trust (REIT) recently strengthened its portfolio with a £120m acquisition of an additional stake in Bluewater, Kent. The company revealed that retail offers “the most attractive risk-adjusted returns,” with high single-digit income yields and rising rents. Despite this optimism, Landsec noted that new supply in the market is “non-existent.” For top-tier assets, non-value-adding capital expenditure remains minimal, accounting for just 0.2% of total asset value. This statement coincides with Landsec’s release of its half-year results for the 2024 financial year, covering the six months up to 30 September. The company reported a pre-tax profit of £243m, a significant recovery from a £193m loss during the same period last year. Landsec attributed part of its success to a shift in retail trends, where brands are prioritising fewer but larger flagship stores. This approach has led to new leases and upsizes with prominent names such as Primark, Pull&Bear, Bershka, Sephora, and JD Sports across its portfolio. The group’s retail portfolio occupancy now stands at 96%, exceeding pre-Covid levels and marking a 70-basis-point improvement. Leases worth £26m have been signed or are nearing completion, with rents 7% above estimated values. Mark Allan, Landsec’s Chief Executive, commented:“Our operational outperformance continues, with further growth in occupancy and positive rental uplifts across both our retail and London portfolios. This progress is translating into accelerated income growth.” He added:“Property values have stabilised, and rising rental values are driving a modest increase in capital values. This has delivered a positive total return on equity. We expect these trends to continue, supported by strong customer demand for our premium spaces and increased activity in the investment market. Our repositioning towards higher-return opportunities, combined with disciplined balance sheet management, leaves us well-positioned to deliver growth and attractive returns.” Earlier this year, Landsec announced its intention to focus on acquisitions throughout 2024, leveraging funds from recent disposals to capitalise on emerging opportunities. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Leeds on the Rise: Ardent Capital’s £200 Million Build-to-Rent Debut

Leeds on the Rise: Ardent Capital’s £200 Million Build-to-Rent Debut

Ardent Capital Partners has marked its first foray into the UK property market with a landmark £200 million investment in a transformative build-to-rent (BTR) development in Leeds. This ambitious project is a significant milestone in the city’s regeneration, reaffirming Leeds as a hotspot for modern urban living. Set on the former site of the Leeds International Swimming Pool, the development will deliver 578 cutting-edge rental apartments to the heart of the city. Valued at approximately £200 million, the scheme is poised to redefine Leeds’ city centre, catering to the growing demand for quality, centrally located rental homes while expanding the city’s vibrant core. Leeds’ BTR sector is experiencing remarkable growth, fuelled by extensive regeneration projects and a strong appetite for urban living. The city centre’s footprint is projected to double in size from 228 acres to 458 acres over the next decade. With 24 BTR schemes currently proposed and three existing developments maintaining occupancy rates above 94%, the city is rapidly establishing itself as a leading hub for rental investment. Ardent’s project aligns seamlessly with Leeds’ vision for its South Bank area—a cornerstone of the city’s redevelopment strategy. This district aims to deliver 8,000 new homes, create 30,000 jobs, and revitalise the River Aire as a central feature of Leeds’ future. By addressing the growing demand for premium residential spaces, Ardent’s investment reinforces the city’s ambitions for urban transformation. The rising demand for high-quality rental properties in Leeds has driven rents to between £22 and £27 per square foot, with premium developments exceeding £30 per square foot. This growth echoes trends seen in mature BTR markets such as Manchester and Salford, positioning Leeds as a compelling choice for investors seeking opportunities in the sector. Ardent Capital’s £200 million commitment not only marks a significant milestone in the regeneration of Leeds but also highlights the city’s rising status in the UK’s build-to-rent market. Their confidence in Leeds as a prime destination for high-value developments underscores the city’s potential for sustained growth and modernisation. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Strategic Expansion: Sixth Street and Copley Point Forge UK Industrial Real Estate Partnership

Strategic Expansion: Sixth Street and Copley Point Forge UK Industrial Real Estate Partnership

Sixth Street, a global investment powerhouse, and Copley Point Capital, a UK-based specialist in industrial property, have announced a joint venture to target high-quality industrial real estate in the United Kingdom. This partnership is set to focus on logistics markets characterised by strong demand and limited supply. The venture has already secured agreements for an initial £180 million in transactions, with plans to further expand through acquisitions of both individual assets and larger portfolios across the UK. A Milestone CollaborationMichael Heal, Founder of Copley Point, highlighted the significance of the venture:“This partnership marks a major expansion of our Block Industrial programme with Sixth Street. Their extensive resources, reputation, and expertise in real estate will enhance our specialised approach and proven ability to add value at the asset level. Over the past five years, my team and I have built a solid foundation, and Sixth Street’s capital flexibility and long-term outlook make them an ideal partner for our growth ambitions.” Capitalising on Sector TrendsGiulio Passanisi, Managing Director and Head of European Real Estate at Sixth Street, shared his enthusiasm for the partnership:“The Copley Point team is highly regarded in the UK market, and we are excited to work together to expand this platform. The UK industrial real estate sector remains constrained in supply, yet it continues to benefit from robust trends such as the rise of e-commerce and the onshoring of supply chains. We aim to leverage our scale and expertise to meet the capital needs of this thriving sector.” A Strong Foundation for GrowthThe venture’s initial transactions were guided by leading advisers, including BCLP, PwC, Jones Hargreaves, and SLR. Sixth Street received legal advice from Ropes & Gray, while CBRE assisted Copley Point in securing the partnership. Gowling served as Copley Point’s legal adviser. With this joint venture, Sixth Street and Copley Point are poised to address the growing demand for mission-critical logistics and industrial properties in the UK, solidifying their presence in this dynamic sector. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Landsec Acquires Full Stake in MediaCity, Eyeing New Residential and Commercial Growth

Landsec Acquires Full Stake in MediaCity, Eyeing New Residential and Commercial Growth

Landsec has taken full ownership of MediaCity in Salford, acquiring Peel Group’s remaining 25% stake in the iconic mixed-use development. The real estate investment trust (REIT) also gained ownership of dock10, MediaCity’s television facility, and the estate’s 218-bed hotel, both previously held by Peel. The transaction, which includes a cash payment of £22 million and the assumption of £61 million in secured debt, totals £83 million. Landsec secured this at a discount to the latest book value of its existing 75% holding in MediaCity, a reflection of Peel’s surrender of “wrapper” leases and the potential income loss associated with those leases. Factoring in the additional assets of the hotel and dock10 studios, the transaction aligns with the book value of MediaCity, ensuring it remains earnings-neutral in the short term. With this acquisition, Landsec gains full control over the future direction of MediaCity, including the adjacent land that offers substantial development potential. The REIT is now positioned to lead the estate’s next growth phase, with plans to create more residential spaces and attract a mix of innovative businesses to the area. Mike Hood, CEO of Landsec U+I, commented, “MediaCity has immense potential. With our increased ownership, we can fully realise our vision for the area—creating a vibrant community where people come to work, live, and enjoy their lives. We look forward to sharing more about our plans soon.” Earlier this year, Landsec received approval for an expansion of MediaCity that will deliver an additional 800,000 sq. ft. of commercial space and 3,200 new homes. With complete ownership, Landsec is now in an ideal position to drive the continued transformation of this landmark destination in Salford. Building, Design & Construction Magazine | The Choice of Industry Professionals

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£200m Partnership Fuels Sustainable Housing Growth in Yorkshire

£200m Partnership Fuels Sustainable Housing Growth in Yorkshire

The Urban Splash Residential Fund (USRF), advised by SURE Capital Partners, has announced a significant new partnership with sustainable developer Citu, formalised through a £200 million Memorandum of Understanding (MoU). This five-year agreement grants USRF priority access to Citu’s pioneering properties, which include single-family homes across Yorkshire, marking a major milestone in the fund’s expansion strategy. This alliance – the second for USRF after a similar agreement with Urban Splash – encompasses 600 homes with potential for future growth. As part of the initial investment, USRF will acquire 52 Citu homes located in the Climate Innovation District in Leeds and Kelham Central, Sheffield. Both developments reflect Citu’s principles of placemaking, building resilient, green, mixed-use neighbourhoods with energy-efficient homes that prioritise community and environmental responsibility. Adding Citu’s homes diversifies USRF’s portfolio, expanding its range of sustainable, single-family residences across the UK. Akeel Malik, Partner at SURE Capital Partners, commented, “This partnership aligns capital with regeneration, empowering us to support the creation of vibrant new neighbourhoods. Leeds and Sheffield are dynamic cities where people want to live, work, and play, and we’re proud to be part of this transformation.” He continued, “Our mission is to build a portfolio of design-led rental homes, and Citu’s award-winning properties and communities offer the ideal product for that vision.” Tom Bloxham MBE, also a Partner at SURE, added, “Investors are ready to back design-led homes – a concept that has proven successful with Urban Splash and now extends to Citu. I have long admired Citu’s work and am delighted to see this agreement finalised.” Bloxham added that this deal underscores SURE Capital’s dedication to connecting UK and international capital with top UK developers such as Citu, Urban Splash, and Javelin Block, supporting sustainable housing projects with substantial investor returns. Yorkshire-based Citu is known for its innovative and environmentally conscious developments. Building to Passivhaus standards, Citu’s homes are about 75% more energy-efficient than traditional UK homes. They are also manufactured locally using modern construction methods in Citu’s Yorkshire factory, further minimising carbon emissions. Through this partnership, Citu will introduce high-quality rental properties to its developments, a strategic new direction for the company. Jonathan Wilson, Citu’s Managing Director, stated, “This collaboration is a substantial step forward for Citu. Our growth strategy is centred on creating sustainable communities with a variety of tenures, and we’re thrilled to offer rental options in partnership with USRF, a partner who shares our commitment to sustainable development.” Established in 2017, USRF has gained a leading position in the market by actively engaging with local communities. Its initiatives include 100% green energy and a resident platform called Ark, offering discounts with local businesses. This new agreement with Citu will allow both organisations to continue fostering sustainable urban living across Yorkshire, benefiting both communities and the environment. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Citu and Urban Splash residential fund (usrf) announce £200m partnership across Citu’s low carbon development portfolio

Citu and Urban Splash residential fund (usrf) announce £200m partnership across Citu’s low carbon development portfolio

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. For further information: https://www.urbansplash.co.uk/us-residential-fund Building, Design & Construction Magazine | The Choice of Industry Professionals

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