Far East Orchard Launches Inaugural Student Accommodation Fund First Close Gbp70 Mil
The mainboard-listed Far East Orchard has announced the launch of its first private fund in Singapore, the FE UK Student Accommodation Development Fund. The fund has completed its first close, raising GBP70 million ($120.13 million) and has a target aggregate commitment of GBP100 million, as stated in the company’s Aug 22 announcement.The fund, known as FESAD, will be investing in development opportunities for Purpose-Built Student Accommodation (PBSA) in the UK. As of now, the fund owns a development site in Glasgow, Scotland and plans on constructing a 273-bed student accommodation project on the land. Far East Orchard aims to target high-potential PBSA development projects in the UK and the first closing of GBP70 million is a step towards achieving that goal.Read also: QIP and Gamuda Land form GBP100 mil UK student housing joint ventureAdvertisementFar East Orchard’s subsidiary, Far East Orchard Investments (UK) Pte Ltd, has committed to GBP35 million of the total GBP70 million committed by limited partners. This large commitment from Far East Orchard reflects the high demand for both university places and student accommodation in the UK. According to CBRE data, there is currently a shortfall of 580,000 beds in the UK.In its 1HFY2024 results ending June 30, Far East Orchard reported that reservations for its UK PBSA portfolio for the academic year starting September stood at 92%. This signifies strong demand for student accommodation in the country. This launch of the fund comes after Far East Orchard’s acquisition of a 49% stake in Homes For Students, the UK’s largest independent PBSA operator, in April this year.Alan Tang, the group CEO of Far East Orchard, stated, “Having been in the UK PBSA business since 2015, we have a strong track record in the market and are confident in the sector given its solid fundamentals, robust student demand, and structural supply-demand gap.” He added, “Moving into the fee-based investment management business is a natural progression in addition to our current operating fee-based model, allowing us to leverage our investment and asset management capabilities in the PBSA business in the UK.”Read also: CDL buys private rented sector project in Manchester for GBP75.6 milAdvertisementAdvertisement
The Master Plan for transportation in Clementi is set to bring about major improvements for residents. The expansion of the MRT network and the enhancement of bus services are key components of this plan. One of the most important developments is the upcoming Cross Island Line (CRL), which will greatly improve the connectivity of Clementi by linking it to key areas like Bukit Timah, Jurong, and Changi. This new line is set to bring a host of benefits to the residents of Elta Condo, including faster and more efficient travel options, shorter commuting times, and increased convenience. To learn more about the development, visit Elta Condo’s website.