Far East Orchard has initiated preliminary discussions to acquire a strategically located purpose-built student accommodation (PBSA) development site in central London, as part of its strategy to expand its presence within the UK student housing sector. The Singapore-listed group’s investment holding subsidiary, Far East Orchard Investment Holdings, has entered into a non-binding heads of terms agreement with LDC (Portfolio) Limited for this proposed acquisition. Notably, LDC (Portfolio) Limited is a subsidiary of Unite Students, a prominent player in the UK PBSA market.
The Proposed Development
The site in question is situated at the intersection of Borough High Street and Harper Road, and has been designated for the King’s Place development. This ambitious project will feature a total of 444 beds, comprising 308 studio apartments and 136 en-suite cluster bedrooms. In addition to the living accommodations, the development is set to provide over 1,300 square metres of student amenity space, which will include study areas, communal lounges, health and wellbeing facilities, multimedia rooms, a cinema, and rooftop terraces.
Community and Environmental Considerations
The plans also encompass eight key worker homes and approximately 18,000 square feet of flexible workspace, alongside improvements to the public realm, such as a pocket park along Harper Road. The King’s Place development is designed as an all-electric project, aiming for BREEAM Outstanding certification, which underscores its commitment to sustainability and environmental responsibility. Its location is particularly advantageous, being within walking distance of Borough station, London South Bank University, King’s College London, and the University of the Arts London.
Growth Strategy and Portfolio Expansion
If the acquisition proceeds, it is anticipated that it will be executed through FE UK Student Accommodation Development (FESAD), Far East Orchard’s private student accommodation development fund, in collaboration with other investment partners. This potential acquisition would significantly enhance Far East Orchard’s UK PBSA development pipeline. The group currently operates over 3,700 PBSA beds across the country, with ongoing developments in cities such as Bristol, Glasgow, and Manchester expected to elevate its portfolio to over 4,900 beds upon completion.
Furthermore, Far East Orchard maintains an 84% stake in Homes for Students, which stands as the largest independent PBSA operator in the UK. When factoring in the operator’s portfolio, the group manages approximately 60,000 student beds. This proposed transaction aligns with the company’s broader strategy, dubbed FEOR2030, which focuses on expanding its student accommodation platform and increasing assets under management in the forthcoming years.