CDL buys five UK student dorms for $357 million
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The purpose-built student accommodation properties have a combined portfolio of 1,863 beds.
PHOTO: CITY DEVELOPMENTS LIMITED
Renald Yeo
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SINGAPORE - City Developments Limited (CDL) has made further inroads into the student accommodation sector in the United Kingdom, with the acquisition of five such assets for £215 million (S$357 million).
The purpose-built student accommodation (PBSA) properties have a combined portfolio of 1,863 beds and an average committed occupancy rate of over 98 per cent, CDL said on Thursday.
The newly acquired properties are located across the UK, spanning Birmingham, Canterbury, Coventry, Leeds and Southampton.
With the completed acquisitions, CDL now owns six PBSA properties totalling 2,368 beds in the UK. All properties are located in prime catchment areas close to key transportation nodes and prominent universities, according to the group.
“The UK student accommodation sector continues to demonstrate strong resilience as students return to campus post-Covid,” said CDL group chief executive Sherman Kwek.
“Our newly acquired assets are strategically located in cities where there is high demand but traditionally underserved by a lack of supply, providing further rental growth potential in the longer term.”
The latest acquisitions come after CDL’s June acquisition of a 19-storey, 505-bed PBSA in Coventry, marking its first foray into the segment.
Shares of CDL were trading at $8.26, up one cent or 0.1 per cent, at 1.15 pm on Thursday. THE BUSINESS TIMES
