The purchase price represents a 5.4% discount to the valuation of the property, which stood at GPB39.4 million as at Nov 29.

CDL Hospitality Trusts (CDLHT) says its wholly-owned subsidiaries, CDL HREIT Investments (IV) Property Limited and CDL HBT Investments (IV) Property Limited, have entered into an asset purchase agreement and completed the acquisition of freehold land comprising an operational purpose-built student accommodation (PBSA) asset in Liverpool. 

The property, Benson Yard, had a purchase consideration of GBP37.3 million ($63.9 million). The purchase price represents a 5.4% discount to the valuation of the property, which stood at GPB39.4 million as at Nov 29. 

Benson Yard, which was opened in February 2023, comprises 404 beds, which includes 47 studios and 357 ensuites in 5-bed, 7-bed and 8-bed clusters. 

Following the acquisition, Benson Yard will continue to be managed by the existing operator, Fresh Property Group Limited. 

The acquisition comes on the back of the REIT’s 2021 revised principal strategy aimed at diversifying into adjacent living assets. Benson Yard marks CDLHT’s second investment into the living class and maiden investment into the PBSA sector, says the REIT. 

The REIT adds that Benson Yard is expected to contribute to a more “diversified and balanced income profile, aligning with CDLHT’s broader strategic objectives for stable long-term growth and income resilience”. 

On a pro forma basis, the acquisition is expected to achieve a DPS accretion of 1.3% and net property income yield of approximately 5.6%. 

Vincent Yeo, CEO of the manager, says: “For our first venture into the PBSA space, we are pleased to be able to secure a high-quality, brand new asset in an excellent location.” 

He adds: “The acquisition also 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.”

Units in CDLHT closed flat at 85 cents on Dec 19.