Singapore-listed Far East Orchard has raised £96m (€112m) for its inaugural UK private student accommodation development fund.
Far East Orchard said 63.5% of FE UK Student Accommodation Development Fund’s (FESAD) capital commitments were from institutional investors, with the group retaining the remaining 36.5% stake.
FESAD focuses on purpose-built student accommodation (PBSA) development opportunities in university cities across the UK.
Alan Tang, group chief executive officer of Far East Orchard, said: “The final closing of FESAD shortly after its establishment in August 2024 reflects the strong confidence our investors have in our UK PBSA strategy and execution capabilities.
“This closing marks a key milestone in the continued evolution of our lodging platform, with the fund management now complementing our existing investment and operating capabilities as we continue moving toward a more asset-light and sustainable business model.
“Moving into the fee-based fund management business enables us to scale further with like-minded capital partners while deepening our recurring income base.”
To date, FESAD has so far committed more than 35% of the raised equity into two PBSA developments–a 273-bed development project in Glasgow, and a 239-bed development at Plymouth Grove in Manchester.
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