Partners Group buys stake in Citivale

Private markets firm Partners Group has bought a minority stake in logistics developer and asset manager Citivale Group Holdings. Partners Group, which has $147m (£117m) of assets under management, said it had made the investment as part of a new strategy to invest in real estate operating companies and their management teams in order to gain exposure to the full value chain across the asset lifecycle. The terms of the investment were not disclosed. It added that the deal would strengthen the existing Greenbox UK logistics joint venture between the pair. The Greenbox platform focuses on energy-efficient logistics developments, with two major projects already under way in Yorkshire (Greenbox Thirsk) and the North East (Greenbox Darlington). Citivale, which was founded in 2010 by James Appleton-Metcalfe, manages more than 5m sq ft of floor area across logistics and light industrial properties in the UK. Assets are managed on behalf of a broad group of institutional investors and family offices from the UK, Europe and the Middle East The leadership team includes two further partners, Rupert Kay and Rebecca Farnsworth. It will continue to operate independently under the management of the three partners. As part of the transaction, Partners has appointed George Craven to Citivale’s board as a non-executive director. Craven is a member of Partners Group’s network of operating directors. Stephen McCall, global head of platforms and opcos at Partners, said: “The real estate investment landscape is undergoing a period of significant change. This is presenting new opportunities to capitalise on the evolving demands of tenants driven by growth in sectors such as e-commerce. “At Partners Group, we are adopting an entrepreneurial mindset to increase the operational intensity of real estate and build a more integrated relationship with our operating partners and platforms in high-conviction sectors.” Appleton-Metcalfe said the investment would “further allow us to continue building out our team and expand the breadth of our client offering”. He added: “The significant correction in the UK logistics market since mid-2022 presents a generational investment opportunity for Citivale to accelerate its growth by sourcing opportunities for both existing and new clients.” Craven said Citivale’s “focus on delivering best-in-class sustainable buildings in the UK market within the Greenbox jv aligns closely with the urgent need to deliver decarbonised real estate”.