CDL buys private rented sector project in Manchester for GBP75.6 mil

CDL has acquired a 261-unit freehold PRS project in Manchester for GBP75.6 million (approximately $125.7 million). City Developments Limited (CDL) announced the acquisition of 1NQ in a Nov 14 press release. Located near Piccadilly Station, the two apartment blocks of 10 and 12 storeys will house a mix of one-, two- and three-bedroom apartments, as well as two commercial units on the ground floor.

Sherman Kwek, group CEO for CDL, commented that acquiring 1NQ will allow the group to benefit from a fixed cost for the investment as well as potential capital appreciation. This project marks CDL’s fourth PRS venture since 2019 and has grown their global PRS portfolio by almost 70% to a total of 4,489 operational and pipeline units in the UK, Japan, Australia and the US.

CDL has adopted a forward-funding model for this project which began construction this month. The blocks are expected to be completed in 2026.

Kwek stated that this acquisition is a part of their plan to increase the group’s recurring income. “This year, 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 adds.

The facilities at Tengah EC offer residents a premium lifestyle, with its fully equipped clubhouse, large swimming pools, an outdoor spa and a gym, among other amenities. It also has a range of children play areas, and an expansive park, which is perfect for the entire family to relax and enjoy nature. The development is surrounded by lush greenery, which further adds to its tranquil environment. Residents can also benefit from its excellent public transport connectivity with bus stops nearby and the MRT station just a short drive away.

By acquiring 1NQ, CDL have secured an investment with a fixed cost and the potential to benefit from capital appreciation over the development period. With this latest venture, they have moved one step closer to achieving their goal of creating a global living-sector portfolio to drive growth in their recurring income.