Far East Orchard JV buys London site for £60m student
Far East Orchard's UK joint venture has acquired a freehold site at 325 Borough High Street for £60 million to develop 444 beds of student accommodation.
Far East Orchard's UK joint venture has acquired a freehold development site at 325 Borough High Street in Southwark, London, for £60 million. The purchase, made through the majority-owned Borough High Street Development vehicle, secures a site with planning permission for 444 purpose-built student accommodation beds and a separate eight-unit worker accommodation block. The sale and purchase agreement was entered on September 24.
Strategic context
This deal marks the third acquisition and first London development by the Far East UK Student Accommodation Development Fund, known as Fesad. The fund now fully deploys its committed capital with this purchase. Fesad owns an 85 per cent stake in Borough High Street Development through its wholly owned subsidiary, Far East PBSA Venture I.
The acquisition brings Far East Orchard’s total purpose-built student accommodation portfolio to more than 60,000 beds owned and managed across the UK. Fesad’s development portfolio now spans three major cities.
| City | PBSA Beds |
|---|---|
| London | 444 |
| Manchester | Not specified |
| Glasgow | Not specified |
| Total | 956 |
Location and market dynamics
The site is located in London Zone 1, a four-minute walk from Borough Underground station and an eight-minute walk from Elephant & Castle station. It is within walking distance of several Russell Group universities, including King's College London, the London School of Economics and Political Science, Queen Mary University of London, and Imperial College London.
Alan Tang, the group CEO of Far East Orchard, said: "London remains one of the UK’s most attractive and supply-constrained student accommodation markets." The market continues to experience a structural supply imbalance, supported by a large domestic and international student population and constraints on new developments.
Development timeline and risks
Construction on the freehold site is targeted to begin in the fourth quarter of 2026. Work is expected to be completed in 2029, ahead of the 2029/30 academic year. The development has received Gateway 2 approval.
There is an ongoing court proceeding between the seller, LDC (Portfolio), and a third party regarding an alleged infringement of rights of light from the proposed development. The potential impact of this proceeding on the Far East Orchard group is not expected to be material.
Ownership and management
Once completed, the scheme will be managed by Homes for Students, a subsidiary of Far East Orchard. The ownership structure of the development vehicle is confirmed, with Fesad holding the controlling interest through its subsidiary.
Construction on the Borough High Street site is targeted to begin in the fourth quarter of 2026.
