SINGAPORE (EDGEPROP) - City Developments Ltd (CDL) has announced the acquisition of 1NQ, a 261-unit freehold private rented sector (PRS) project in Manchester for GBP75.6 million (approximately $125.7 million) in a Nov 14 press release. CDL will forward-fund the project, which will commence construction this month. The development marks CDL’s fourth PRS project in the UK since 2019.

The site for 1NQ, located near Piccadilly Station within the Piccadilly Basin neighbourhood, will be developed into two apartment blocks spanning 10 and 12 storeys respectively. The blocks will house a mix of one-, two- and three-bedroom apartments and two commercial units on the ground floor. The project is expected to be completed in 2026.

Sherman Kwek, group CEO for CDL, notes the group has continued to scale up its global living-sector portfolio to drive growth in CDL’s recurring income. “This year, our group’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,” he adds.

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1NQ marks CDL’s first UK PRS acquisition under a forward-funding arrangement. According to Kwek, this will allow CDL to secure its investment at a fixed cost, manage cash flows over the development period and benefit from potential capital appreciation.