CDL Hospitality Trusts units acquire Liverpool PBSA asset for $63.9m

The acquisition will be funded through debt financing.

CDL Hospitality Trusts’ 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 a purpose-built student accommodation (PBSA) asset in Liverpool for $63.9m (£37.3m).

The freehold property, Benson Yard, opened in February 2023 and offers 404 beds, comprising 47 studios and 357 ensuites in 5-bed, 7-bed, and 8-bed clusters. 

It is situated near Liverpool city centre and is close to many higher education institutions, major transport nodes, and retail establishments.

The purchase price is 5.4% below the valuation. The acquisition will be funded through debt financing.

Based on the total acquisition cost of $68.9m (£40.6m), which comprises the purchase consideration of $63.9m (£37.3m) and estimated transaction costs of $5.6m (£3.3m), the acquisition is expected, on a pro forma basis, to achieve a dividend per share (DPS) accretion of 1.3%.