CDL Hospitality Trusts recently announced their first acquisition into the PBSA sector. The trust has purchased Benson Yard, a 404-bedroom PBSA development in Liverpool.
Knight Frank valued the property at £39m, with the total acquisition cost reaching approximately £41m. The scheme has recorded an occupancy rate of over 97%, achieving a net rental income of over £2.5m.
The Benson Yard development completed in February 2023 and provides 47 studios and 357 en-suite bedrooms arranged in clusters of five, seven and eight.
The scheme provides 11,800 sq ft of amenities including a 987 sq ft gym, a lounge and cinema room, an outdoor courtyard, and a sky lounge with views out over Liverpool. Spanning 124,400 sq ft, the PBSA development is managed by Fresh.
“We are pleased to acquire a high-quality, brand new asset in an excellent location. This acquisition is the perpetuation of our revised principal investment strategy to invest into longer stay living assets, so as to support long-term growth through diversification and enhanced income resilience.
Vincent Yeo, CEO of the Managers
“Benson Yard marks our maiden entry into Liverpool. The PBSA market in Liverpool is supported by key drivers – a growing student population, its status as a Russell Group university city and a vibrant football culture. Along with Benson Yard’s exceptional location and facilities, the asset is underpinned by strong fundamentals.
“Importantly, at a purchase price of £37.3 million (~S$63.9 million), we were able to secure this Acquisition from administrators at a meaningful discount relative to current replacement cost and independent valuation, positioning the asset for capital appreciation in the future, amid elevated institutional investment interest.”
CDL Hospitality Trusts is one of Asia’s leading hospitality trusts. It comprises CDL Hospitality Real Estate Investment Trust (H-REIT), a real estate investment trust, and CDL Hospitality Business Trust (HBT).
The trust currently owns 20 properties, comprising 16 hotels in Singapore, Australia, New Zealand, Japan, United Kingdom, Germany and Italy; two resorts in the Maldives; a Build to Rent property in the UK and a retail mall in Singapore.
