InforCapital
News•

Far East Orchard closes £96m UK student housing fund - InforCapital

Far East Orchard closes £96m private student housing fund focused on UK development, marking a key step in its asset-light strategy.

AM
Alvaro de la Maza

Partner at Aninver

Key Takeaways

  • Sector: Real Estate.
  • Geography: United Kingdom.

Analysis

Singapore-listed Far East Orchard has completed the final close of its first private student accommodation development vehicle, securing £96 million in capital commitments for its newly launched FE UK Student Accommodation Development Fund (FESAD).

The fund attracted a mix of institutional backers, who collectively account for 63.5 % of the total committed capital. Far East Orchard retains a 36.5 % stake, underscoring its co-investment commitment and long-term belief in the UK purpose-built student accommodation (PBSA) market.

Launched in August 2024, FESAD represents a strategic move to scale Far East Orchard’s lodging platform through an asset-light, fee-generating model. The firm aims to generate recurring income while expanding its development pipeline across prime university cities in the United Kingdom.

More than 35 % of the fund’s capital has already been allocated to two PBSA projects: a 273-bed development in Glasgow and a 239-bed project on Plymouth Grove in Manchester. The fund continues to assess further investment opportunities to fully deploy its capital.

CEO Alan Tang said the strong backing reflected investor confidence in Far East Orchard’s UK PBSA strategy and operating capabilities, noting its 13 operational assets and one project under construction across seven cities. This platform was significantly expanded by the April 2024 acquisition of a 49 % stake in Homes for Students, one of the UK’s largest student housing operators.

“This closing marks a key milestone in the evolution of our lodging platform,” said Tang. “Fund management now complements our investment and operational expertise as we deepen our shift toward a sustainable, asset-light business model.”

Far East Orchard remains focused on disciplined capital deployment and delivering long-term value through high-quality, strategically located student accommodation in the UK.