Far East Orchard launches inaugural student accommodation fund with first close of GBP70 mil
The launch of the investment follows Far East Orchard’s procurement of a 49% claim in Residence For University Students, the UK’s largest independent PBSA provider, disclosed in April.
Far East Orchard’s wholly-owned subsidiary, Far East Orchard Investments (UK) Pte Ltd, has committed GBP35 million of the GBP70 million executed by certain affiliates.
According to an Aug 22 statement, FESAD will invest in Purpose-Built Student Accommodation (PBSA) project opportunities inside the UK.
Tang includes: “Moving right into the fee-based financial investment management business is a natural progression along with our existing running fee-based model to take advantage of our financial investment and asset control capabilities in the PBSA service in the UK.”
Far East Orchard says there is high interest for both college places and student rental in the UK. Mentioning CBRE information, Far East Orchard states there is a current shortfall of 580,000 beds in the UK.
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According to Far East Orchard’s outcomes for 1HFY2024 finished June 30, reservations for its UK PBSA accounts for the university year commencing September stood at around 92%.
Alan Tang, team CEO of Far East Orchard, states: “Having actually been in the UK PBSA organization since 2015, we have already developed a track record on the market and continue to be confident in the sector given its solid fundamentals, effective student demand, and structural supply-demand gap.”
The fund is presently seeded with a property development site in Glasgow, Scotland, which was obtained in March, in which a 273-bed student room project will be put up. The fund is going to target “high-potential” PBSA development plans in the UK, states Far East Orchard and the finalization of its very first sealing of GBP70 million.
Far East Orchard has recently launched its initial exclusive account in Singapore, the FE UK Student Accommodation Development Fund. The mainboard-listed firm also introduced the very first completion of GBP70 million ($ 120.13 million), in addition to the fund’s intended accumulation commitment of GBP100 million.
