Institutional investors contributed 63.5% of the total.
Far East Orchard has closed its first UK student accommodation development fund, securing $166m (£96m) in committed capital.
Institutional investors contributed 63.5% of the total, with Far East Orchard retaining a 36.5% stake. The fund, named FE UK Student Accommodation Development Fund (FESAD), is part of the company’s strategy to grow fee-based income and shift towards an asset-light business model.
FESAD will invest in purpose-built student accommodation (PBSA) projects in key UK university cities. So far, it has deployed over 35% of its capital into two developments: a 273-bed project in Glasgow and a 239-bed project in Manchester.
Since entering the UK PBSA sector in 2015, the group has built a portfolio of 13 operational properties and one under development. Its acquisition of a 49% stake in Homes for Students in April 2024 strengthened its capabilities in operations and asset management.
Far East Orchard said the fund marks a key milestone in its transformation into a more asset-light and sustainable business.
The company added that it will continue to focus on high-quality, well-located student housing assets in the UK.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.