Liverpool’s Benson Yard PBSA acquired for £41m

CDL Hospitality Trusts, a Singapore-based asset management firm, has purchased the 404-bed city centre student accommodation block.

Knight Frank valued the property at £39m, with the total acquisition cost reaching approximately £41m, according to CDL.

The building off Benson Street completed in February 2023 and provides 47 studios and 357 en-suite bedrooms arranged in clusters of five, seven, and eight.

Spanning 124,400 sq ft, the accommodation is managed by Fresh Property Group. Benson Yard 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.

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Benson Yard has a net property income of 5.6% and the deal represents CDL’s first foray into the PBSA sector. CDL Hospitality also owns the 165-bed Lowry Hotel in Salford, the recently rebranded 189-bed VOCO Manchester on Portland Street, and the 352-bed apartment scheme in Piccadilly called The Castings, which was acquired in a £78m deal in August 2021.

Since the start of September, Benson Yard has recorded an occupancy rate of more than 97%, achieving a net rental income of over £2.5m. Rents start at £135 a week.

According to Companies House, the vendors NR Crux, which owns the asset, and NR Lyra which owns the plot of land, have been in administration since 2021 after accruing debts above £26m.

Benson Street was initially due for practical completion by August 2021 but Covid-19 stalled the build before contractor Create Construction collapsed.

On the site’s southern side, planning consent has been granted for the development of a 144-key hotel on a plot of vacant freehold land. Options to instead use the plot for more student flats have also been floated.