CDL to develop build-to-rent residential skyscraper in Britain at cost of $200m
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Octagon, the 49-storey tower, will comprise 370 units and have an estimated total development cost of aroundS$200 million.
PHOTO: CDL
Tai Nai Lun
SINGAPORE (THE BUSINESS TIMES) - City Developments Limited (CDL) has acquired a 250-year leasehold site in Birmingham, Britain, for £6.5 million (S$11.8 million) to develop a build-to-rent octagonal-shaped residential skyscraper.
Called Octagon, the 49-storey tower will comprise 370 units and have an estimated total development cost - including the land cost - of around £110 million (S$200 million).
The development is part of CDL's expansion of its British private rented sector portfolio, which has a pipeline of over 1,300 units including Octagon, the property developer said on Friday (Dec 17).
The purchase consideration for the 16,760 sq ft site translates to £18 per square foot, based on its gross internal area of 359,329 sq ft. The site has a residential net lettable area of 258,170 sq ft, and a commercial net lettable area of 2,230 sq ft.
CDL expects it will complete the Octagon in 2025. The 155m-tall tower will likely comprise one-, two- and three-bedroom apartments, a retail unit on the ground floor, as well as concierge services and resident amenities.
CDL's group chief executive Sherman Kwek noted that the private rented sector had outperformed many other asset classes amid market volatility, and "continues to display resilience and strong growth potential".
Mr Kwek said he anticipates keen interest in the property, which will "augment the quality of CDL's private rented sector portfolio and enhance our recurring income segment".
Octagon, located within the Birmingham city centre, will be part of the Paradise Masterplan - a landmark transformation project in the city that will develop 1.7 million sq ft of office space across 10 buildings, retail shops and a hotel with three new public squares. CDL also noted that Birmingham is Britain's second-largest economy after London.
To date, CDL has invested a total capital of £2.2 billion in the British private rented sector, and has also expanded into the private rented sector in Japan, with plans to include other key markets such as Australia.
CDL shares were trading at $6.83 as at 11.19 am on Friday, down five cents, or 0.7 per cent.
