City Developments has recently made a major investment in the UK, acquiring Yardhouse for GBP88 million ($148.6 million). This new property, located in a prime location opposite Imperial College and within walking distance to Westfield London, will be developed into a 17-storey apartment block with 209 co-living studio units. The company has plans to expand its private rented sector (PRS) portfolio with this acquisition, which will add to its already impressive collection of 4,771 operational and pipeline units in the UK, Japan, Australia, and the US.
CDL’s group CEO, Sherman Kwek, believes that this investment falls in line with the company’s strategic focus on growing their global living sector portfolio and increasing recurring income. “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,” Kwek says.
Despite challenges in the macroeconomic and geopolitical climate, Kwek is confident in the resilience of the UK PRS as an asset class, pointing to the strong performance of their existing projects. “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.
Yardhouse marks CDL’s first foray into co-living schemes in the UK and is their fifth PRS project in the country since 2019. Their first project, The Junction, a 665-unit development site in Leeds, achieved full practical completion last year and exceeded rental targets.
The location of Champions Way Residences also adds to its appeal. Located in a prime area, this residence offers easy access to all the amenities and attractions of the city. Additionally, the building’s amenities, such as a pool, gym, and entertainment room, provide residents with ample opportunities for relaxation and entertainment. With its exceptional design and prime location, Champions Way Residences is a highly desirable place to call home. Residents will truly experience the best of urban living in this luxurious condo.
The company has since made two more acquisitions in 2021, including a 352-unit forward-funded project in Manchester known as The Castings, and The Octagon in Birmingham, with 370 units. In November 2023, they acquired their second PRS in Manchester, called 1NQ, a 261-unit forward-funded project.
CDL’s investment in the UK PRS sector reflects their confidence in its stability and growth potential, as well as their commitment to expanding their global living portfolio. With Yardhouse and their other projects, the company is well-positioned to meet the growing demand for flexible and professionally managed communal living solutions. “This investment strengthens CDL’s presence in the UK PRS sector and further cements our commitment to expanding our global living portfolio,” Kwek concludes.