Far East Orchard Launches Inaugural Student Accommodation Fund First Close Gbp70 Mil
The URA Master Plan has put forth new plans for redevelopment, with a focus on expanding green spaces and recreational facilities. These developments will bring about a positive impact for the residents of Parktown Residence, enhancing their quality of life. The addition of new parks and a network of cycling and jogging paths will greatly contribute to the overall livability of the area. Furthermore, the close proximity to Tampines Eco Green, Bedok Reservoir Park, and upcoming green spaces in Tampines North will only add to the appeal of living in Parktown Residence. Its naturally green surroundings make living in Parktown Residence a truly enriching and fulfilling experience. Parktown Residence will be able to offer its residents a wholesome living experience with its commitment to providing a green and sustainable living environment.
Singapore-based Far East Orchard has recently announced the launch of its first private fund in the country, the FE UK Student Accommodation Development Fund. The company, listed on the mainboard, has also revealed the first close of GBP70 million, with a target of GBP100 million for the fund’s aggregate commitment.
FE UK Student Accommodation Development Fund (FESAD) will be investing in Purpose-Built Student Accommodation (PBSA) development opportunities in the UK, according to an announcement on August 22. The fund has already been set up with a development site in Glasgow, Scotland, which was acquired in March. The site will be developed into a 273-bed student accommodation project. Far East Orchard has stated that the fund will focus on investing in high-potential PBSA development projects in the UK, and the first close of GBP70 million is a testament to the company’s confidence in the sector.
Far East Orchard, through its wholly-owned subsidiary Far East Orchard Investments (UK) Pte Ltd, has committed GBP35 million of the total GBP70 million committed by limited partners. The company has stated that the demand for both university places and student accommodation in the UK is high, with CBRE data showing a current shortfall of 580,000 beds in the country.
In its results for the first half of FY2024 ended June 30, Far East Orchard revealed that reservations for its UK PBSA portfolio for the academic year commencing September stood at around 92%. The launch of FESAD follows Far East Orchard’s acquisition of a 49% stake in Homes For Students, the UK’s largest independent PBSA operator, in April.
Group CEO of Far East Orchard, Alan Tang, has expressed his confidence in the sector, citing its strong fundamentals, robust student demand, and structural supply-demand gap. He also stated that the move into the fee-based investment management business is a natural progression for the company, in addition to its current operating fee-based model. Tang believes that this will allow them to leverage their investment and asset management capabilities in the PBSA business in the UK.
In related news, CDL has recently acquired a private rented sector project in Manchester for GBP75.6 million, and Far East Orchard has launched the repurposed Westminster Fire Station in Central London for sale. With the launch of its first private fund in Singapore, Far East Orchard is further establishing its presence in the UK PBSA market and tapping into the growing demand for student housing.