Far East Orchard to acquire London site for $102 mil, plans 444-bed student housing development
The acquisition signals developer confidence in London’s supply-constrained student housing market and could expand institutional PBSA supply near several major universities.
Far East Orchard will acquire a Zone 1 London freehold site for GBP60 million ($102 million) and develop a 444-bed PBSA project by 2029.
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Far East Orchard is acquiring a freehold development site at 325 Borough High Street in Southwark, London, for GBP60 million ($102 million), with plans to develop a 444-bed purpose-built student accommodation (PBSA) project.
Known as King’s Place, the site is located in Central London’s Zone 1. The proposed development will also include a separate eight-unit key worker accommodation block, Far East Orchard announced on Sept 24.
Planning permission for the development was granted by Southwark Council in February 2024, while Gateway 2 approval was obtained in July 2026. The latter is a key regulatory milestone that allows construction to commence.
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The development is targeted for completion in 2029, ahead of the 2029/30 academic year. It will feature communal lounges, health and wellness facilities and outdoor spaces, and is targeting a BREEAM Outstanding sustainability rating.
King’s Place is about a seven-minute walk from King’s College London and is also near the London School of Economics and Political Science, Queen Mary University of London and Imperial College London.
The site is a four-minute walk from Borough Underground station and an eight-minute walk from Elephant & Castle station. Supermarkets, a post office and other amenities are also within walking distance.
Far East Orchard says London’s student accommodation market continues to face a structural supply imbalance, supported by a large domestic and international student population and constraints on new development.
King’s Place will be Far East Orchard’s first development in London and the third acquisition under the FE UK Student Accommodation Development Fund (FESAD), its UK PBSA development fund.
The acquisition will bring FESAD’s development portfolio to 956 PBSA beds across London, Manchester and Glasgow.
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The fund’s other developments comprise a 273-bed project on Osborne Street in Glasgow, which topped out in April and is expected to be completed in 2027, and a 239-bed development at Plymouth Grove in Manchester. The latter received Gateway 2 approval in July and has commenced construction, with completion slated for 2028.
Upon completion, King’s Place is expected to be managed by Homes for Students, a subsidiary of Far East Orchard.
Alan Tang, group CEO of Far East Orchard, says London remains one of the UK’s most attractive and supply-constrained student accommodation markets. He adds that King’s Place expands the group’s development portfolio across three major UK cities.
The acquisition is being undertaken through Borough High Street Development, a joint venture company in which FESAD holds an 85% stake. Far East Orchard Investments (UK) and Aurum Investments, a subsidiary of Woh Hup Holdings, each hold 7.5%.
The acquisition is expected to be completed within three weeks of the sale and purchase agreement dated Sept 24, or earlier if agreed by the buyer and seller.
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