Singapore-listed property group City Developments Ltd (CDL) has purchased a freehold site in Leeds, the UK, from Alpha Real Trust for £15.4 million ($27.5 million), or £80 per sq ft. This marks an expansion by CDL into the UK private rented sector.

The site at Monk Bridge spans 193,752 sq ft, and will include a residential component of 386,000 sq ft, and a commercial space of 16,000 sq ft. CDL intends to develop a 664-unit, build-to-rent residential project with retail space on the site.

Sherman Kwek, CEO of CDL Group, says due to increased labour mobility and the growing popularity of renting, there is “strong growth potential” for the private rented sector.

“Brexit is expected to have limited impact on this sector as demand is mainly driven by locals,” he adds.

The project is slated for completion in 2023, at an estimated total development cost of £140 million. CDL expects an annual net yield of 5%.

The site is a 10-minute walk to Leeds Train Station, and two kilometres to Leeds’ city centre. Leeds is two hours by train from London.