Far East Orchard, through its subsidiary, Osborne Street Development Ltd, has acquired a plot of land in central Glasgow, Scotland for GBP3 million ($5.1 million). Osborne Street Development is held under a limited partnership with Far East Orchard O10 Investments (UK), a wholly-owned subsidiary of the group and Aurum Investments (Private) Limited, a wholly-owned subsidiary of Woh Hup Holdings, as limited partners.
A sale and purchase agreement (SPA) was entered into with Nova Osbourne on March 12.
The site is intended to be developed into a purpose-built student accommodation (PBSA) of 273 beds.
The acquisition marks the expansion of Far East Orchard’s UK PBSA portfolio and represents its entry into Scotland.
The costs for the acquisition and development will be funded by Far East Orchard Investments (UK) and Aurum Investments in proportion to their interests in the limited partnership.
“Following the collaboration in the joint venture PBSA development at Silverthorne Bristol, we are excited to strengthen our partnership with Woh Hup with this development site acquisition in Glasgow, Scotland. This latest development will create a new supply in Glasgow to address the shortfall in beds for the ever-growing student needs in the city,” says Alan Tang, group CEO of Far East Orchard.
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The completion of the acquisition is conditional upon no successful judicial review being received on the planning permission. If the development progresses as planned, it is expected to be completed in 2026.
“In alignment with the Group’s FEOR 25 strategy to grow its PBSA portfolio and build a lodging platform to achieve sustainable and recurring income, we will continue expanding our student accommodation portfolio into key UK cities which have significant demand and supply imbalances,” Tang adds.
“This development will help ease the shortage of PBSA in Glasgow and strengthen our presence in a key study destination,” he continues.
Shares in Far East Orchard closed flat at $1.01 on March 12.
