CDL Hospitality Trust (CDLHT) has made a foray into the UK’s residential build-to-rent (BTR) market.
The Singapore-listed business trust announced on 31 August that it has entered into a land purchase, and a development funding agreement for GBP73.3 million (USD100 million).
The agreement would see the REIT invest into a residential BTR forward- funding scheme in Manchester, UK at a fixed-cost, with cash flows managed over the duration of development.
Pursuant to the land purchase agreement, CDLHT has today acquired certain land and buildings located on the south east side of Longacre Street, Manchester for GBP9.5 million.
The project is expected to reach practical completion around May 2024.
CDLHT’s post-transaction pro forma gearing ratio as of 30 June would be 42.3%, assuming that the project is fully funded by debt.
The trust’s full disclosure on the venture can be viewed here.
CDLHT was last done on the Singapore Exchange at SGD1.18, which currently implies a distribution yield of 2.07% according to data compiled on the Singapore REITs table.