CDL acquires Manchester rental apartment project for $125.7 million
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Dubbed 1NQ, the project will mark City Developments Limited’s fourth private rental project in Britain since 2019.
PHOTO: CITY DEVELOPMENTS LIMITED
Michelle Zhu
SINGAPORE – City Developments Limited (CDL) has acquired a 261-unit freehold project in Manchester for £75.6 million (S$126.4 million).
The property developer on Tuesday said it will forward-fund the private rented sector (PRS) project, which will commence construction in November.
Forward-fund refers to the forward acquisition of the development, which means CDL will fund the development cost, and own all of the land from the date of acquisition.
Full planning permission was obtained for the project in October, and it is slated for completion in 2026.
The site is located along Tariff Street and Port Street in the Northern Quarter within the Piccadilly Basin.
CDL said this is one of the last few residential sites available for development in the area, and it offers the convenience of being close to Piccadilly Station and Victoria Station.
The group intends to develop the site into two new-build 10- and 12-storey apartment blocks, featuring a mix of one-to-three-bedroom apartments, as well as two commercial units on the ground floor.
Dubbed 1NQ, the project will mark CDL’s fourth PRS project in Britain since 2019.
Group chief executive Sherman Kwek said it also represents the first British PRS acquisition under a forward-funding arrangement.
This would enable the group to secure its investment at a fixed cost, manage its cash flows over the development period, and benefit from potential capital appreciation, he added.
With its latest acquisition in Manchester, the group’s PRS portfolio in Britain comprises 1,648 operational and pipeline units across Leeds, Birmingham and Manchester.
Mr Kwek estimated that CDL’s global PRS portfolio has grown by almost 70 per cent to 4,489 operational and pipeline units in Britain, Japan, Australia and the United States – up from 2,640 units in 2022.
“Despite an uncertain macroeconomic environment, our PRS assets have shown resilience and strong growth potential,” he said. “We have continued to scale up our global living sector portfolio to drive growth in our recurring income. “
Shares of CDL closed four cents, or 0.7 per cent, lower at $6.03 on Tuesday, after the announcement. THE BUSINESS TIMES
