The fund supports the company’s pivot ‘towards an asset-light model and its objective of growing recurring fee-based income’
[SINGAPORE] Far East Orchard on Wednesday (Jun 18) said its first private student accommodation development fund in Singapore has secured £96 million (S$166 million) in total committed capital at its closing.
This includes £70 million raised at its first closing in August last year. At the time, the company said it had a target aggregate commitment of £100 million.
Institutional investors account for 63.5 per cent of the FE UK Student Accommodation Development Fund’s capital, with Far East Orchard retaining the remaining 36.5 per cent stake, the company said in a bourse filing.
The fund focuses on purpose-built student accommodation (PBSA) development opportunities in strong universities across the United Kingdom.
To date, it has committed more than 35 per cent of the raised equity into two such developments – a 273-bed project in Glasgow, Scotland and a 239-bed one at Plymouth Grove in Manchester, England.
The company said the establishment and closing of this inaugural fund mark a “significant step forward” in its strategy to “build a resilient lodging platform”.
It added that the fund also supports “its strategic pivot towards an asset-light model and its objective of growing recurring fee-based income”.
Shares of Far East Orchard closed flat at S$1 on Wednesday, before the announcement.
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