Singapore’s CDL pays £215m for five UK PBSA assets

Singapore's CDL pays £215m for five UK PBSA assets
Riverside, Canterbury.

Singapore-listed global real estate company City Developments (CDL) has expanded its UK student accommodation portfolio with the acquisition of five purpose-built student accommodation (PBSA) assets for £215 million (appr.S$357 million) via two separate transactions.

With an average age of less than three years and a portfolio comprising 1,863 beds, the five assets in Birmingham, Canterbury, Coventry, Leeds and Southampton boast excellent amenities and are located in prime catchment areas close to key transportation nodes and prominent universities.

Given their strong attributes, the five properties enjoy an average committed occupancy rate of over 98%,the company said.

CDL made its foray into the UK’s PBSA sector in June 2022 with the acquisition of Infinity, its first PBSA asset with 505 beds in Coventry. With the completed acquisitions, the Group’s PBSA portfolio has expanded to six assets totalling 2,368 beds. The sizeable portfolio will enable better operational efficiency for the Group.

Sherman Kwek, CDL Group Chief Executive Officer, said, “The UK student accommodation sector continues to demonstrate strong resilience as students return to campus post-COVID. Our newly acquired assets are strategically located in cities where there is high demand but traditionally underserved by a lack of supply, providing further rental growth potential in the longer term. With universities in the UK enhancing their global positioning, it presents an exciting opportunity for us to amplify our presence in this sector and strengthen our recurring income.”