Octopus Real Estate has provided a £26m loan facility to Citu to help fund the second phase of the developer’s Climate Innovation District in Leeds.
The development, which is a major pillar of the Leeds South Bank regeneration scheme – one of the largest regeneration programmes in Europe, will deliver more than 900 high-quality, low carbon, energy-efficient homes.
The second phase of the development includes 247 homes – comprising 161 apartments, 69 houses and 17 affordable homes – plus six commercial units.
The loan provided by Octopus covers the refinancing of existing debt, and will fund the remaining construction costs, professional fees and associated costs required to complete and sell the units.
The properties will be delivered using Citu’s on-site manufacturing facility that produces a timber-framed component system of building and the completed units will include a mechanical ventilation heat recovery (MVHR) system which captures and recycles heat from the home.
Citu estimates that on average the homes, which will also benefit from green roofs, rainwater collection, photovoltaic solar panels, and fully electric heating, with no gas boilers, will save four tonnes of CO2 per year compared with traditionally built homes, plus around 60 tonnes of embodied carbon per home.
Nick White, head of development origination at Octopus Real Estate, said: “This is exactly the kind of loan we want to be doing more of at Octopus Real Estate; supporting a regional housebuilder pushing the boundaries of sustainable development to deliver real change. Citu’s Climate Innovation District is a model of how to economically build zero carbon neighbourhoods that create greener, healthier, smarter and better-connected cities.
“At Octopus we are on a mission to reimagine real estate investment to create much-needed sustainable housing that is fit for the future and provides real social value to local communities. The team at Citu are fully aligned with our goals, and we’re thrilled to help them realise the next phase of this innovative development.”
Chris Thompson, founder of Citu, added: “It’s essential that we change the way we live in our cities. At Citu we develop places that encourage and enable bold change, so we look for long-term funding partners that share this vision. We are pleased to be on that journey with Octopus. Together, we’re building a legacy for the city of Leeds and proving that essential change is both achievable and deliverable for a better, lower carbon future.”
