Far East Orchard Buys London PBSA Site Southwark 2026

Key Points

• Far East Orchard is acquiring a freehold site at 325 Borough High Street in Southwark, London, for £60 million (£102 million Singapore dollars).
• The company plans to construct a 444-bed Purpose-Built Student Accommodation (PBSA) development known as King’s Place.
• The project will also include a separate eight-unit key worker accommodation block.
• Southwark Council granted planning permission in February 2024, and Gateway 2 regulatory approval was secured in July 2026.
• Construction completion is slated for 2029, ahead of the 2029/2030 academic year.
• The scheme marks Far East Orchard’s first development in London and the third acquisition under the FE UK Student Accommodation Development Fund (FESAD).
• FESAD’s total development portfolio will expand to 956 PBSA beds across London, Manchester, and Glasgow upon completion.
• The site acquisition is being executed via Borough High Street Development, a joint venture where FESAD holds an 85% stake, alongside Far East Orchard Investments (UK) and Aurum Investments, which hold 7.5% each.
• Homes for Students, a subsidiary of Far East Orchard, is expected to manage the site upon completion.

Southwark (South London News) September 25, 2026 – Far East Orchard has announced the acquisition of a freehold development site at 325 Borough High Street in Southwark, Central London, for £60 million (£102 million Singapore dollars). The Singapore-listed real estate group intends to transform the Zone 1 location into a 444-bed Purpose-Built Student Accommodation (PBSA) facility, to be known as King’s Place. In addition to the student beds, the proposed scheme incorporates a distinct eight-unit residential block dedicated to key worker accommodation.

What are the key details and timeline of the King’s Place development?

The acquisition of the Borough High Street parcel marks a major milestone for Far East Orchard as it enters the London PBSA development arena. Regulatory progress for the site is already well advanced. Southwark Council originally granted planning permission for the scheme in February 2024. Subsequently, the project secured Gateway 2 approval in July 2026, a crucial regulatory milestone under the UK Building Safety Act framework that formally permits construction works to begin on site.

The target completion for King’s Place is set for 2029, timing the delivery to open ahead of the 2029/2030 academic year. Architectural and environmental specifications for the scheme target a BREEAM Outstanding sustainability rating. Upon completion, the property will offer a range of student-focused amenities, including health and wellness facilities, communal lounges, and landscaped outdoor spaces.

Where is the Borough High Street site located relative to London universities?

Situated in Zone 1, King’s Place places residents within walking distance of several major higher education institutions. The development is situated approximately a seven-minute walk from King’s College London. Additionally, the location provides direct access to the London School of Economics and Political Science (LSE), Queen Mary University of London, and Imperial College London via nearby transport networks.

Local transit links are situated in close proximity to the site. Borough Underground station is located a four-minute walk away, whilst Elephant & Castle station is accessible within an eight-minute walk. Daily amenities, including local supermarkets and a post office, are situated within short walking distance of the Borough High Street address.

How does the transaction fit into Far East Orchard’s investment fund strategy?

King’s Place represents the third acquisition under the FE UK Student Accommodation Development Fund (FESAD), Far East Orchard’s dedicated UK PBSA development vehicle. The transaction is being executed through a joint venture entity named Borough High Street Development. FESAD holds an 85% controlling stake in the venture, whilst Far East Orchard Investments (UK) and Aurum Investments—a subsidiary of Singapore-based construction and civil engineering group Woh Hup Holdings—each maintain a 7.5% interest.

Completion of the site purchase is expected to occur within three weeks from the signing of the sale and purchase agreement on September 24, 2026, or earlier if mutually agreed by the buying and selling parties. Once operational, the property is expected to be managed by Homes for Students, a specialist UK student accommodation operator and subsidiary of Far East Orchard.

With the addition of the 444 beds at King’s Place, FESAD’s total development pipeline rises to 956 PBSA beds across three major UK cities: London, Manchester, and Glasgow.

The fund’s existing regional projects are progressing through their respective development phases:

• Glasgow: A 273-bed scheme situated on Osborne Street topped out in April 2026, with full completion scheduled for 2027.
• Manchester: A 239-bed development located at Plymouth Grove secured Gateway 2 regulatory approval in July 2026. Construction has commenced, with completion targeted for 2028.

As stated by Group Chief Executive Officer of Far East Orchard, Alan Tang, London remains one of the most attractive and supply-constrained student housing markets within the United Kingdom. Tang noted that the acquisition of King’s Place serves to expand the group’s footprint across key primary university cities in the country. Far East Orchard highlighted that London continues to experience a structural supply-demand imbalance in student housing, driven by a dense domestic and international student population alongside strict development constraints on new builds.

Background of PBSA institutional investment in the UK market

The UK Purpose-Built Student Accommodation (PBSA) sector has consistently attracted significant domestic and international institutional capital over recent years. This sustained interest is primarily driven by the underlying structural imbalance between the supply of dedicated student housing and the expanding population of higher education students, particularly in tier-one academic locations such as London, Manchester, and Edinburgh.

Historically, full-time student enrollments across UK higher education institutions have outpaced the rate at which local authorities and private developers can deliver new bed spaces. Planning restrictions, rising land costs, and strict urban development policies in central locations—notably Transport for London’s Zone 1 and Zone 2 areas—have created significant barriers to entry for new schemes. Furthermore, the implementation of stricter regulatory compliance frameworks, such as the UK Building Safety Act requiring multi-stage Gateway approvals, has lengthened project delivery timelines across high-density residential sectors.

In response to these market dynamics, international investors and developers have increasingly turned to structured development funds to deploy capital into UK real estate. Joint ventures combining foreign investment capital with experienced local asset managers and property operators have become a standard delivery vehicle. The acquisition strategy focuses on locations benefiting from direct access to Russell Group universities and established public transport infrastructure, mitigating long-term occupancy risk through persistent localized demand.

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Prediction: How will this development affect higher education students, key workers, and local property markets?

The delivery of the King’s Place project at 325 Borough High Street is anticipated to impact several distinct stakeholder groups within the Southwark area and the broader London market upon its 2029 completion.

Higher education students

For domestic and international students attending Central London universities, the addition of 444 PBSA beds will provide direct, high-specification accommodation capacity within walking distance of institutions such as King’s College London. Given the acute shortage of private rental stock and university-managed halls in Zone 1, the scheme adds modern housing stock equipped with dedicated study and wellness amenities, reducing reliance on the traditional private rented sector (PRS).

Local key workers

The inclusion of an independent eight-unit key worker block addresses specialized housing needs within the London Borough of Southwark. By providing purpose-built accommodation set aside specifically for local essential workers—such as healthcare professionals and education staff—the development provides dedicated housing capacity close to major urban employers and transport nodes.

Local rental and commercial market

In the immediate vicinity of Borough High Street, the influx of 444 full-time student residents is expected to generate sustained demand for local commercial services, including retail, food and beverage, and public transport networks. Furthermore, by housing a concentrated cohort of students in a single PBSA facility, the development may ease pressure on existing multi-bedroom residential houses in Southwark traditionally converted into Houses in Multiple Occupation (HMOs), potentially freeing up private rental stock for local families and professionals.