New £18.5m deal at Humber Enterprise Park will pave the way for further development

Citivale has signed an £18.5m deal at a Yorkshire business park, which it says will pave the way for further development and investment this year.
Humber Enterprise ParkHumber Enterprise Park
Humber Enterprise Park

The developer and asset management company has entered a joint venture with the real estate investor at the Humber Enterprise Park (HEP) in Brough, following the end of its partnership with LRE Industrial.

James Appleton-Metcalfe, the managing director of Citivale (inset), said: “Our partnership with LRE Capital, which enabled us to buy Humber Enterprise Park five years ago, has come to a cordial end. The fund had reached the end of its life.

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“We were looking for a like-minded investor and were delighted when Westcore first expressed an interest and then entered into a joint venture with us. We have the same aims and objectives for the future of this very special enterprise park and this clarity of vision will enable us to develop out the park and create much-needed jobs for the Humber region.”

The annual rental income of the Humber Enterprise Park is £1.8m, with a net initial yield (NIY) of 9.29 per cent.

This deal follows two new lettings at the refurbished Mercury office building on the park. Morson Projects and Employment Ownership Association have taken 2,500 sq ft on the ground floor of the building on a six-year lease. The rent is £8.50 per sq ft.

Mr Appleton-Metcalfe added: “The future is very bright at HEP. It has just been announced that BAE, who are based here, will ramp up work on a project to develop a next-generation fighter plane to replace the Eurofighter Typhoon. The aerospace giant will accelerate its Tempest programme throughout 2020.

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“As part of the scale-up, around 100 BAE employees at HEP will be transferred from manufacturing roles into engineering positions.”

Humber Enterprise Park incorporates one million sq ft of high-quality office and industrial space and 20 acres of development land. The site benefits from Enterprise Zone and Assisted Area Status, which offers incentives to attract new occupiers.

So far £6m has been spent on regenerating the whole site, with another £1.2m earmarked for further improvements.

Future plans include creating a running track on the perimeter of the site; a heritage museum, paying tribute to the rich history of aircraft manufacturing here; green spaces and allotments; break-out areas and spaces for art; and a fitness suite.

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