CITY Developments Limited : C09 0% (CDL) has acquired a 261-unit freehold project in Manchester for £75.6 million (S$125.7 million).

On Tuesday (Nov 14), the property developer said it will forward-fund the private rented sector (PRS) project, which will commence construction this month.

Full planning permission was obtained in October for the project, which is slated for completion in 2026.

The site is located along Tariff Street and Port Street in the Northern Quarter within the Piccadilly Basin. CDL said this is one of the last few residential sites available for development in the area, and offers the convenience of being close to Piccadilly Station and Victoria Station.

The group intends to develop the site into two new-build 10- and 12-storey apartment blocks, featuring a mix of one-to-three-bedroom apartments as well as two commercial units on the ground floor.

Dubbed 1NQ, the project will mark CDL’s fourth PRS project in the UK since 2019.

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Group chief executive officer Sherman Kwek said it also represents the first UK PRS acquisition under a forward-funding arrangement.

This will enable the group to secure its investment at a fixed cost, manage its cash flows over the development period, and benefit from potential capital appreciation, he added.

Including its latest acquisition in Manchester, the group’s PRS portfolio comprises 1,648 operational and pipeline units across Leeds, Birmingham and Manchester.

Kwek estimated that CDL’s global PRS portfolio has grown by almost 70 per cent to 4,489 operational and pipeline units in the UK, Japan, Australia and the US – up from 2,640 units last year.

“Despite an uncertain macroeconomic environment, our PRS assets have shown resilience and strong growth potential,” he said.

Shares of CDL closed 0.7 per cent or S$0.04 lower at S$6.03 on Tuesday, after the news.