Singapore-based City Developments Limited (CDL) has expanded into the UK rental property sector with £15.4m purchase of site in Leeds
City Developments Limited (CDL) has expanded into the UK private rented sector (PRS) with the acquisition of a freehold site in Leeds from Alpha Real Trust.
The Singapore-headquartered property group completed the £15.4 million ($27.5 million) purchase for the 193,752 square feet (sq. ft.) site. This translates to about £80, or $142 per square foot for the 193,752 square feet (sq. ft.) site. It includes residential and commercial spaces for the development of residential and retail space projects.
CDL plans to develop a 664-unit build-to-rent residential project with retail space located within the site’s heritage arches beneath a viaduct. Full planning permission has been obtained for the site and CDL says the project is expected to be completed in 2023, with total development cost estimated at £140 million, and net yield expected at 5 per cent annually.
Located at Monk Bridge in Leeds – the UK’s third largest city – the site lies in close proximity to the Leeds train station, and near the Leeds city centre.
In its press statement on Friday (March 1), CDL also noted that it will create a “vibrant and stylish” estate similar to New York’s High Line landmark.
A public park will be developed on the viaduct, providing spaces for public functions, outdoor film screenings, pop-up restaurants and a pedestrian walkway leading to the Leeds train station and Leeds city centre, the group said.
CDL group CEO, Sherman Kwek said that expanding into the UK PRS is in line with their strategy to grow CDL’s recurring income. Due to increased labour mobility and the growing popularity of renting, they see strong growth potential for this sector.
Moreover, the PRS is a key part of the government’s agenda to solve the UK’s housing supply-demand imbalance. Brexit is expected to have limited impact on this sector as demand is mainly driven by locals, he added.
CDL shares were trading at $8.78 apiece, down 1.57 per cent, or $0.14 at 2.52pm on Friday.