Far East Orchard has completed the first closing on its FE UK Student Accommodation Development Fund, which aims to invest up to £100m in the purpose-built student accommodation sector.
The fund completed its first closing at £70m, with £35m of its capital coming from Far East Orchard Investments, a wholly-owned subsidiary of the group.
In March 2024, the fund acquired a development site in Glasgow, Scotland where a 273-bed student accommodation project is set to be built. The Glasgow scheme will be delivered in partnership with Ambassador Group.
The fund will target high-potential PBSA development projects in the UK.
Far East Orchard group chief executive Alan Tang said: “The establishment of a UK PBSA private fund in Singapore marks a key cornerstone for the group as we build a resilient lodging platform, leveraging on our investment and asset management capabilities.
“Having been in the UK PBSA business since 2015, we have established a track record in the market and remain confident in the sector given its strong fundamentals, robust student demand, and structural supply-demand gap. We are heartened by our investor’s confidence in us, which has led to a promising first closing.
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