City Developments Limited (CDL) has acquired a 250-year leasehold site from Paradise Circus Limited Partnership (PCLP), expanding its UK Private Rented Sector (PRS) portfolio. Located in the heart of Birmingham’s Paradise precinct, the 16,760 square feet (sq ft) site will be developed into Octagon, an iconic residential tower with 370 build-to-rent units. The purchase consideration of £6.5 million (approximately S$11.8 million) translates to about £18 (approximately S$33) per square foot on Gross Internal Area of 359,329 sq ft.

When completed around 2025, the 155-metre-tall Octagon building, designed by Glenn Howells Architects, will offer exceptional views across Birmingham. As a result of its unique octagonal shape, the apartments will also enjoy an abundance of light, with rooms having a wider aspect than most conventional homes.

CDL plans to develop the site into a 49-storey octagonal tower with one-, two- and three-bedroom apartments, a retail unit on the ground floor, as well as concierge services and resident amenities. Full planning permission has been obtained for the site which has a residential and commercial Net Lettable Area of around 258,170 sq ft and 2,230 sq ft respectively. The estimated total development cost (including land cost) is around £110 million (approximately S$200 million).

Octagon is the Group’s third PRS project in the UK since 2019, following CDL’s acquisition of the development site for a 665-unit project in Leeds called The Junction, and CDL Hospitality Trusts’ recent acquisition of the 352-unit forward funded project in Manchester called The Castings. Altogether, the Group now has a pipeline of over 1,300 units in its UK PRS portfolio.

CDL Group Chief Executive Officer, Mr Sherman Kwek said, “The PRS continues to display resilience and strong growth potential, outperforming many other asset classes amidst the market volatility. Since we made our first foray into UK’s PRS in 2019, we have actively explored opportunities to broaden our portfolio by investing in landmark projects that allow for placemaking. The Junction, our PRS development that is under construction, has enabled us to play an active role in rejuvenating the larger Wellington Financial Centre area in Leeds. Likewise, our investment in Octagon, which is located in a prime location in Birmingham, presents an exciting opportunity to be part of the transformation of the Paradise precinct. We anticipate keen interest in the majestic octagonal high-rise residential building, which will augment the quality of CDL’s PRS portfolio and enhance our recurring income segment.”