Far East Orchard has entered a joint venture to acquire a land plot in Bristol, in the U.K., to develop a purpose-built student accommodation project (PBSA), according to a filing to SGX Tuesday.
The Singapore-listed company will have an effective 42.5 percent interest in the development, and will commit capital of GBP13.3 million, or around S$22.5 million, the filing said. The joint venture partners are Woh Hup Holdings and Way Assets, the filing said. Altogether, the joint venture partners will commit capital and shareholder loans of up to GBP26.6 million, or around S$45 million, the filing said.
The project, located less than a kilometer from University of Bristol’s new campus, will have at least 690 beds, the filing said. The expected completion date is in 2027, the filing said.
Far East Orchard said the new project was its fourth investment in Bristol, which it views as a strong regional city for student housing, with two major universities; the company said it was focusing its student accommodation portfolio on the U.K. as higher education enrollment numbers there continue to grow.
“This JV further expands our footprint in Bristol to support the city’s growing student population,” Alan Tang, Far East Orchard’s group CEO, said in the statement. “This is aligned with the group’s strategic focus to grow our recurring income streams and to continue expanding our student accommodation portfolio into U.K. cities with favourable demand and supply.”
Far East Orchard is a property development company with a lodging platform aimed at creating recurring income.
Woh Hup is a privately owned Singapore-based construction and civil engineering company. Way Assets is an investment holding company for a Singapore-based single-family office.