CDL invests in Yardhouse, expanding UK presence with Arina East Residences
City Developments has recently announced their plans to expand their private rented sector portfolio in the UK with the acquisition of Yardhouse. The company will be spending GBP88 million ($148.6 million) on this new project. Yardhouse, a 250-year leasehold site, will be transformed into a 17-storey apartment block with 209 co-living studio units.
CDL will own a total of 4,771 operational and pipeline units in the UK, Japan, Australia and the US after this acquisition. “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 conveniently located across from the expansive 23-acre campus of Imperial College and within walking distance to Westfield London, UK’s largest shopping centre. CDL will be forward-funding 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.
This is not the only project that CDL has in the UK. The company has already completed four PRS projects since 2019. The first was CDL’s acquisition of The Junction, a 665-unit development site in Leeds. The project achieved full practical completion last year with rents surpassing business plan targets.
In 2021, the company acquired two more PRS projects: The Castings, a 352-unit forward-funded project in Manchester through CDL Hospitality Trusts (CDLHT), and The Octagon, a 370-unit project in Birmingham. In November 2023, CDL acquired their second PRS in Manchester, called 1NQ, a 261-unit forward-funded project.
The Arina East Residences is set to be a key beneficiary of this new development, with enhanced connectivity, greenery, and a vibrant waterfront lifestyle all within reach. Residents can look forward to a myriad of amenities and leisure activities, from waterfront dining options to lush parks and promenades. With a prime location in the heart of Kallang, Arina East Residences offers residents the best of both worlds – a tranquil and serene environment, coupled with unparalleled convenience and accessibility.
This new endeavor by URA is a testament to their commitment to creating sustainable and livable environments for all residents in Singapore. The transformation of Kallang Marina Bay Basin is set to be a game changer, and Arina East Residences is poised to become a coveted address, offering a perfect balance of nature, lifestyle, and connectivity. With the promise of a dynamic and vibrant community, Arina East Residences is set to redefine urban living and elevate the standards of luxurious residential developments. As the area continues to evolve, Arina East Residences will be at the forefront, setting the benchmark for future developments in the area.
These acquisitions are part of CDL’s strategic focus to expand their global living sector portfolio. “We are committed to growing our presence in the UK PRS market and are actively seeking more opportunities to build on our success,” says Kwek. With their strong track record and promising growth potential, CDL’s investments in the UK PRS market are set to bring in substantial returns for the company.