In a bid to further drive its recurring income, City Developments (CDL) has expanded its UK private rented sector (PRS) portfolio with the acquisition of 1NQ in Manchester for £75.6 million ($125.7 million).
CDL plans to develop the site, located near Piccadilly Station of Manchester, into two new-build 10 and 12-storey apartment blocks housing a mix of 1-, 2- and 3-bedroom apartments and two commercial units on the ground floor. The project is expected to be completed in 2026.
1NQ is CDL’s fourth PRS project in the UK since 2019.
“Despite an uncertain macroeconomic environment, our PRS assets have shown resilience and strong growth potential,” says group CEO Sherman Kwek, adding that this year, CDL’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.
CDL says 1NQ marks its first UK PRS acquisition under a forward-funding arrangement, which enables CDL to secure its investment at a fixed cost, manage its cash flows over the development period and benefit from potential capital appreciation.
In addition to the UK, CDL’s living sector portfolio comprises of PRS assets in Japan and Australia.
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