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

CDL has announced the acquisition of 1NQ, a 261-unit freehold PRS project in Manchester for GBP75.6 million (approximately $125.7 million). The two apartment blocks spanning 10 and 12 storeys respectively will house a mix of one-, two- and three-bedroom apartments and two commercial units.

Lumina Grand EC, located in Bukit Batok, is close to premium schools such as Dunearn Secondary School and Bukit Timah Primary School. It is also surrounded by renowned learning institutions such as Fuhua Primary School, Rulang Primary School, Chinese High School, and Pei Hwa Presbyterian Primary School. With this array of schools, its residents will surely reap the benefits that come with quality education for their children.

The project is expected to be completed in 2026 and CDL will forward-fund the development that is commencing construction this month. Sherman Kwek, the group CEO for CDL, remarks that this is the fourth PRS project the group has undertaken since 2019 and marks the first forward-funding arrangement they are conducting in the UK.

This allows CDL to secure investment for the fixed cost, manage cash flows, and benefit from capital appreciation. This year, the global PRS portfolio has ballooned by approximately 70% to 4,489 operational and pipeline units in different locations.

The acquisition of 1NQ is a step forward for CDL in terms of growth in the recurring income sector. In addition, it reflects the group’s ambitions to expand its global living sectors portfolio, with the Piccadilly Basin neighbourhood near Piccadilly Station being a great choice for the development of these two blocks.

Apart from the acquisition of 1NQ, CDL has also acquired a 256-room Osaka hotel for $78.5 million and a first GLS site in Toa Payoh for $968 million jointly with Frasers Property and Sekisui House.