Singapore: Far East Orchard has established its first private fund in Singapore, and completed its first closing of £70 million.
The fund, called the FE UK Student Accommodation Development Fund, will invest in PBSA development opportunities in the UK. The fund has a target aggregate commitment of £100 million.
The fund is seeded with a development site in Glasgow, where a 273-bed student accommodation project will be built. The site was acquired by the group in March 2024.
Far East Orchard said its PBSA portfolio’s reservations stood at 92 per cent for the academic year commencing September 2024, reflecting “strong continued demand” for student accommodation.
In May last year, the company acquired a 49 per cent stake in independent PBSA operator Homes For Students. It said that the move would enhance the operating management capabilities of the group’s PBSA business and strengthen its position in the UK PBSA sector.
Far East Orchard group chief executive Alan Tang said: “Moving into the fee-based investment management business is a natural progression in addition to our current operating fee-based model to leverage our investment and asset management capabilities in the PBSA business in the UK. It allows the group to grow its recurring income stream as it steers towards an asset-light business model, ultimately reducing its balance sheet exposure and delivering greater sustainable value to shareholders.”
