Far East Orchard closes $166m UK student housing fund

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.