Far East Orchard launches inaugural student accommodation fund with first close of GBP70 mil
Alan Tang, team chief executive officer of Far East Orchard, claims: “Having operated in the UK PBSA company since 2015, we have developed a track record in the marketplace and remain optimistic in the industry given its solid components, strong enrollee demand, and structural supply-demand gap.”
Far East Orchard has already launched its first exclusive fund in Singapore, the FE UK Student Accommodation Development Fund. The mainboard-listed firm also announced the initial close of GBP70 million ($ 120.13 million), along with the fund’s target aggregate dedication of GBP100 million.
The fund is at the moment seeded with a property site in Glasgow, Scotland, that was acquired in March, where a 273-bed individual room project will certainly be constructed. The fund is going to aim for “high-potential” PBSA development projects in the UK, states Far East Orchard and the completion of its original sealing of GBP70 million.
According to Far East Orchard’s results for 1HFY2024 finished June 30, appointments for its UK PBSA portfolio for the school year commencing September stood at around 92%.
Far East Orchard states there is strong demand for both college places and student accommodation in the UK. Mentioning CBRE information, Far East Orchard claims there is a present lack of 580,000 beds in the UK.
The start of the fund complies with Far East Orchard’s acquisition of a 49% claim in Homes For College Students, the UK’s biggest independent PBSA operator, announced in April.
According to an Aug 22 announcement, FESAD will acquire Purpose-Built Student Accommodation (PBSA) development prospects within the UK.
Tang includes: “Moving right into the fee-based financial investment management business is a natural progress in addition to our present running fee-based model to leverage our investment and property monitoring effectiveness in the PBSA firm in the UK.”
Far East Orchard’s wholly-owned subsidiary, Far East Orchard Investments (UK) Pte Ltd, has dedicated GBP35 million of the GBP70 million executed by minimal associates.
