Far East Orchard secures £70M in first close as it launches UK student housing fund

SINGAPORE: Singapore-based real estate firm Far East Orchard has officially launched its first private fund, the FE UK Student Accommodation Development Fund (FESAD), aiming to expand its student housing portfolio in the United Kingdom.

In a strong initial showing, the fund has raised £70 million (S$120.6 million) from investors, with the target set at £100 million (S$172.3 million).

The funding will be used to develop a 273-bed student accommodation project in Glasgow, Scotland, which Far East Orchard acquired earlier in March.

This project marks the first investment under the FESAD, which is focused on Purpose-Built Student Accommodation (PBSA) developments across the UK.

Far East Orchard Investments (FEOI), a subsidiary of Far East Orchard, has made a significant contribution to the fund’s success, committing £35 million (S$60.3 million) of the total raised.

The company aims to capitalize on the growing demand for student housing in the UK, which has consistently remained strong.

As of the first half of 2024, Far East Orchard’s UK PBSA portfolio had achieved approximately 92% occupancy for the academic year starting in September 2024, demonstrating strong demand for quality student accommodation.

The FESAD fund is expected to explore further investment opportunities within the UK as Far East Orchard continues to strengthen its foothold in the student housing sector. /TISG