Far East Orchard secures €112m for first PBSA fund

Singapore-based Far East Orchard Limited has secured £96 mln (€112 mln) in committed capital for its first private student accommodation development fund.

Plymouth Grove

The FE UK Student Accommodation Development Fund (FESAD) is backed by a diverse group of institutional investors (63.5%) and Far East Orchard (36.5%).
It will invest in purpose-built student accommodation (PBSA) developments in strong university cities across the UK. 
FESAD has already committed over 35% of its capital to projects in Glasgow (273 beds) and Plymouth Grove in Manchester (239 beds) and is actively seeking further investment opportunities. 
Alan Tang, Group CEO of Far East Orchard, commented, "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. Since entering the UK PBSA sector in 2015, Far East Orchard has built competencies across investment, development, asset management, sales and operations, with 13 operational PBSA properties and one under development, across seven cities in the UK. These capabilities were further enhanced by the acquisition of a 49% stake in Homes for Students in April 2024, one of the UK’s largest independent student accommodation operators. Moving into the fee-based fund management business enables us to scale further with like-minded capital partners while deepening our recurring income base.”
This fund strengthens Far East Orchard's transition to an asset-light strategy and sustainable business model.