CDL has acquired a leasehold site in Birmingham for $8.64 million to develop a residential skyscraper
City Developments Limited (CDL) has acquired a 250-year leasehold site in Birmingham, Britain, for £6.5 million ($8.64 million) to develop a build-to-rent octagonal-shaped residential skyscraper.
Called Octagon, the 49-storey tower will comprise 370 units and have an estimated total development cost – including the land cost – of nearly £110 million ($146.27 million).
The development is part of CDL’s expansion of its British private rented sector portfolio, which has a pipeline of over 1,300 units including Octagon, the property developer said on Friday.
The purchase consideration for the 16,760 sq ft site translates to £18 per square foot, based on its gross internal area of 359,329 sq ft. The site has a residential net lettable area of 258,170 sq ft, and a commercial net lettable area of 2,230 sq ft.
CDL expects it will complete the Octagon in 2025. The 155m-tall tower will likely comprise one-, two- and three-bedroom apartments, a retail unit on the ground floor, as well as concierge services and resident amenities.
CDL’s group chief executive Sherman Kwek noted that the private rented sector had outperformed many other asset classes amid market volatility, and continues to display resilience and strong growth potential.
Mr Kwek said he anticipates keen interest in the property, which will ‘augment the quality of CDL’s private rented sector portfolio and enhance our recurring income segment’.
Octagon, located within the Birmingham city centre, will be part of the Paradise Masterplan – a landmark transformation project in the city that will develop 1.7 million sq ft of office space across 10 buildings, retail shops and a hotel with three new public squares. CDL also noted that Birmingham is Britain’s second-largest economy after London.
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