CDL Hospitality Trusts Makes Maiden Entry Into The Build-To-Rent Sector In Manchester, United Kingdom

September 1, 2021 – CDL Hospitality Trusts1 (CDLHT) announced that it has entered into a land purchase agreement and a development funding agreement to invest into a residential build-to-rent (BTR) forward- funding scheme in Manchester, UK for a purchase consideration of £73.3 million (S$136 million) (US$101.12 million).

The transaction is a forward-funding arrangement which allows CDLHT to invest in a residential BTR property at a fixed-cost, with cash flows managed over the duration of development.

Pursuant to the land purchase agreement, CDLHT has acquired certain land and buildings located on the south east side of Longacre Street, Ancoats, Manchester, UK, from Packaged Living (FREOF V Heyrod) LLP, for a consideration of £9.5 million (S$17.6 million) (US$13.09 million).

Mr Vincent Yeo, Chief Executive Officer of CDLHT’s Managers, commented on the investment, “The Castings marks our maiden foray into an adjacent lodging space. We are executing on our revised principal investment strategy whereby we are pivoting to amplify our growth by increasing our addressable market.”

“We aim to both achieve enhanced income stability and asset class diversification, which takes us beyond geographical diversification of hospitality assets.”

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