Artist's impression of the Yardhouse in London (Picture: CDL)
City Developments is spending GBP88 million ($148.6 million) to expand its so-called private rented sector (PRS) portfolio in the UK, with the acquisition of Yardhouse.
The 250-year leasehold site will be developed into a 17-storey apartment block with 209 co-living studio units with a total gross floor area of 102,600 sq ft.
With this acquisition, CDL will own a total of 4,771 operational and pipeline units in the UK, Japan, Australia and the US.
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"This dovetails with our strategic focus to scale up our global living sector portfolio to enhance our recurring income and augment our fund management aspirations," says group CEO Sherman Kwek.
The Yardhouse is opposite the expansive 23-acre campus of Imperial College and within walking distance to Westfield London, UK’s largest shopping centre.
CDL will forward-fund this PRS project, which is expected to be completed in 2026.
"Despite macroeconomic and geopolitical challenges, the UK PRS has proven to be an exceptionally resilient asset class with robust operational performance," says Kwek.
"Given its prime location at the heart of a burgeoning district, Yardhouse is well-positioned to capitalise on the growth in flexible, professionally managed communal living solutions," he adds.
According to CDL, Yardhouse marks its first co-living scheme project in the UK and is its fifth PRS project in the UK since 2019.
The first was CDL’s acquisition of the development site in Leeds, called The Junction.
The 665-unit project has obtained full practical completion last year with achieved rents well ahead of business plan targets.
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This was followed by another two acquisitions in 2021 – one by CDL Hospitality Trusts (CDLHT), a 352-unit forward-funded project in Manchester named The Castings.
There is also The Octagon in Birmingham, with 370 units.
In November 2023, CDL acquired its second PRS in Manchester, called 1NQ, a 261-unit forward-funded project.