Far East Orchard launches inaugural student accommodation fund with first close of GBP70 mil
Alan Tang, team CEO of Far East Orchard, says: “Having been in the UK PBSA company since 2015, we have already created a track record out there and stay assured in the sector given its strong fundamentals, robust person interest, and structural supply-demand gap.”
The start of the fund adheres to Far East Orchard’s purchase of a 49% involvement in Residence For Students, the UK’s leading independent PBSA operator, reported in April.
The fund is presently seeded with a property site in Glasgow, Scotland, which was obtained in March, where a 273-bed enrollee accommodation project will be built. The money will focus on “high-potential” PBSA development projects in the UK, says Far East Orchard and the completion of its first closing of GBP70 million.
Far East Orchard claims there is strong need for both university areas and student accommodation in the UK. Citing CBRE data, Far East Orchard claims there is a current shortfall of 580,000 beds in the UK.
Tang adds: “Moving into the fee-based investment management business is a natural progression in addition to our current running fee-based model to take advantage of our financial investment and property monitoring capabilities in the PBSA business in the UK.”
According to an Aug 22 announcement, FESAD will invest in Purpose-Built Student Accommodation (PBSA) development ventures inside the UK.
According to Far East Orchard’s results for 1HFY2024 ended June 30, appointments for its UK PBSA accounts for the university year beginning September set at around 92%.
Far East Orchard has recently released its initial private fund in Singapore, the FE UK Student Accommodation Development Fund. The mainboard-listed business even introduced the very first completion of GBP70 million ($ 120.13 million), in addition to the budget’s target accumulation commitment of GBP100 million.
Far East Orchard’s wholly-owned subsidiary, Far East Orchard Investments (UK) Pte Ltd, has actually dedicated GBP35 million of the GBP70 million carried out by certain associates.
