CDL buys private rented sector project in Manchester for GBP75.6 mil
CDL’s fourth United Kingdom private rented sector (PRS) project, 1NQ, is to commence construction this month. Located near Piccadilly Station within the Piccadilly Basin neighbourhood, the 261-unit freehold development will span 10 and 12 storeys, and house a mix of one-, two- and three-bedroom apartments, as well as two commercial units on the ground floor. 1NQ was acquired by City Developments Ltd (CDL) for a sum of GBP75.6 million (approximately $125.7 million).
This move marks the group’s first UK PRS acquisition under a forward-funding arrangement, allowing CDL to lock in the investment at a fixed cost and manage cash flows during the development period. CDL’s group CEO, Sherman Kwek, noted that 2020 has seen the group rapidly expand its global living-sector portfolio to drive its recurring income.
“Our group’s global PRS portfolio has grown by almost 70% to 4,489 operational and pipeline units in the UK, Japan, Australia and the US, up from 2,640 units last year,” he said.
Kwek went on to point out the potential capital appreciation that 1NQ presents, remarking that the project “will allow CDL to secure its investment at a fixed cost, manage cash flows over the development period and benefit from potential capital appreciation”.
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The ready-for-occupation 1NQ project is expected to generate strong returns for CDL, and is scheduled to be completed in 2026.
Through the acquisition of 1NQ, CDL has now established itself as a key global player in the private rental space. This proves to be a sign of the group’s continued global growth ambition.