Hollingbury House, a student accommodation in Brighton, UK managed by Homes for Students (Picture: Homes for Students website)
SINGAPORE (EDGEPROP) - Far East Orchard has unveiled its FEOR30 strategy, aiming to scale its integrated lodging platform through capability uplift, earnings resilience, and disciplined capital deployment. Under the FEOR30 strategy, the group seeks to achieve a 50% increase in assets under management (AUM), rising from $2 billion as of 2025 to $3 billion by 2030. It is also targeting a 50% rise in its portfolio of rooms and beds to 110,000 by 2030, up from about 72,000 currently.
The company is focusing on strengthening its core capabilities in investment, asset management, and fund management, while growing recurring earnings by expanding its diversified lodging portfolio, which includes hospitality and purpose-built student accommodation (PBSA). It also aims to maintain asset-right discipline by allocating capital to priority assets while recycling out of lower-yielding or non-core positions.
A key highlight is Far East Orchard's staged acquisition of Homes for Students (HFS), a leading student accommodation provider in the UK with over 50,000 beds across 235 properties. The company acquired a 49% stake in HFS in April 2024, before increasing its stake to 84% in September of this year. It is targeting to acquire 100% of HFS by 2030. The acquisition makes Far East Orchard one of the largest PBSA operators among Singapore-listed companies.
Read also: Far East Orchard increases stake in UK purpose-built student accommodation Homes For Students to 84%
Far East Orchard says it will focus on its strengths within hospitality, PBSA and fund management. For hospitality, it will expand its hotel management platform in Japan, selectively expand in Southeast Asia, and increase its UK and Europe exposure. For PBSA, it aims to grow its fee-based business through HSF, selectively expand into build-to-rent and co-living in the UK and Europe, and optimise and recycle capital. For fund management, Far East Orchard intends to build a lodging-focused fund management platform and seed new funds with a mix of existing assets and new acquisitions.