Far East Orchard Buys Unite’s £60m Student Housing Site in Southwark 2026

Key Points

• Unite Group PLC has agreed to sell its 444-bed King’s Place development site on Borough High Street in Southwark, south London, for £60 million to an affiliate of Far East Orchard.
• The transaction represents a 3 per cent discount to the site’s June 2026 valuation, with full completion targeted for mid-October 2026.
• The planned development will feature 308 individual studio flats, 136 en-suite rooms arranged in cluster apartments, eight key worker housing units, and 18,000 square feet of dedicated workspace.
• Construction delivery is scheduled for completion in 2029, making the student accommodation available ahead of the 2029/30 academic year.
• The transaction brings Unite Group’s total agreed or completed asset disposals to £200 million for the year, supporting its broader target of £300 million to £400 million in sales.
• The acquisition deploys the remaining committed capital of the Far East UK Student Accommodation Development Fund, expanding Far East Orchard’s purpose-built student accommodation portfolio to over 60,000 beds.

Southwark (South London News) September 30, 2026 — As reported by Ian Lyall of Proactive Investors, Unite Group PLC, the largest provider and developer of purpose-built student accommodation in the United Kingdom, has formally agreed to sell its King’s Place development project located in Southwark, south London, to an affiliate of Singapore-listed property group Far East Orchard for a total consideration of £60 million.

As detailed by Sixuan Wu of Urban Living News, the acquisition was executed through a joint venture structure representing the Far East UK Student Accommodation Development Fund, marking the fund’s third major acquisition and its first student housing development within the Greater London area.

What are the financial details and transaction timeline of the Southwark deal?

As reported by Amilia Stone of DirectorsTalk Interviews, the £60 million agreed sale price represents a 3 per cent discount against the asset’s recorded book value as of June 2026. Official completion of the purchase transaction is scheduled for mid-October 2026.

According to financial coverage by Ian Lyall of Proactive Investors, the disposal of the King’s Place site was already factored into Unite Group’s financial projections, with the company maintaining its adjusted earnings guidance for FY2026 at 41.5p to 43.0p per share.

What features and accommodation types will the King’s Place development include?

As reported by Sixuan Wu of Urban Living News, the King’s Place project is situated at 325 Borough High Street within London’s Zone 1, in close proximity to Borough Underground Station. The mixed-use scheme is designed to accommodate 444 student beds, comprising 308 independent studio flats and 136 en-suite bedrooms arranged within shared cluster flats.

Furthermore, as noted by Sixuan Wu of Urban Living News, the completed construction will incorporate eight self-contained apartments reserved specifically for key workers, alongside 18,000 square feet of commercial workspace.

When did the King’s Place project secure planning permissions?

As reported by Amilia Stone of DirectorsTalk Interviews, planning consent for the central London site was initially granted by Southwark Council in February 2024.

Following local authority approval, the scheme obtained its Building Safety Act Gateway 2 regulatory clearance in July 2026. As reported by Sixuan Wu of Urban Living News, target completion for the building has been set for 2029, ensuring operational readiness ahead of the 2029/30 academic term.

How does this sale fit into Unite Group’s capital recycling strategy?

As reported by Ian Lyall of Proactive Investors, Unite Group Chief Executive Officer Joe Lister explained the rationale behind the divestment, stating:

“The sale of King’s Place is evidence of our capital discipline and proactive capital recycling programme. It successfully realises value from a development project which no longer meets our return requirements and reflects our focus on delivering the best outcomes for shareholders.”

As further reported by Amilia Stone of DirectorsTalk Interviews, Joe Lister added that the group is progressing its portfolio realignment, stating:

“We are moving at pace to further increase our alignment to the strongest universities and remain on track to deliver £300-400 million of disposals this year.”

As noted by Ian Lyall of Proactive Investors, the transaction takes Unite Group’s total year-to-date agreed or completed asset sales to £200 million, achieved at a weighted average net operating income yield of 3.0 per cent.

What strategic goals does the purchase achieve for Far East Orchard?

As reported by Sixuan Wu of Urban Living News, the transaction enables Far East Orchard to fully deploy the remaining committed capital within the Far East UK Student Accommodation Development Fund.

As reported by Sixuan Wu of Urban Living News, Far East Orchard Chief Executive Officer Alan Tang commented on the transaction, stating:

“King’s Place marks a significant milestone for FESAD as our first development in London and the full deployment of the fund’s committed capital. London remains one of the UK’s most attractive and supply-constrained student accommodation markets.”

The addition of the Southwark site increases Far East Orchard’s overall international purpose-built student accommodation portfolio to more than 60,000 beds owned and managed across its operating platforms.

Background of the particular development

The King’s Place site at 325 Borough High Street has been a key parcel in Southwark’s urban urban regeneration corridor. Initially conceived by Unite Group as part of its pipeline for Zone 1 London expansion, the project was intended to capture high demand from university institutions situated across central and south London.

Following full planning authorization by Southwark Council in February 2024, the scheme was designed to integrate purpose-built student accommodation with civic benefits, such as dedicated key worker housing units and ground-floor commercial workspace to align with local planning guidelines. However, evolving interest rate conditions, construction cost pressures, and shifting corporate return thresholds led Unite Group to review its unbuilt development pipeline during 2025 and 2026. To optimize return on capital equity, Unite pivoted toward releasing unbuilt land assets and reallocating capital directly into operational properties aligned with top-tier Russell Group universities.

Prediction: How this development can affect the student housing market and institutional investors

The acquisition of the King’s Place development is expected to influence several key stakeholders within the UK property and higher education sectors:

• Higher Education Students: The addition of 444 purpose-built student beds by 2029 will provide targeted housing relief in a heavily supply-constrained Zone 1 London location, giving domestic and international students expanded access to modern studio and cluster units near central university campuses.
• Institutional Investors and PBSA Developers: Far East Orchard’s full capital deployment demonstrates sustained overseas appetite, particularly from South East Asian capital, for UK educational real estate. The deal establishes a benchmark yield profile for non-operational land disposals, signaling to institutional developers that pre-construction transfers remain a viable exit strategy for balancing corporate balance sheets amidst elevated interest rate environments.
• Local Community and Key Workers: The inclusion of eight dedicated key worker apartments and 18,000 square feet of commercial workspace will provide localized accommodation and business infrastructure within the Southwark borough, contributing directly to community employment and municipal urban planning objectives.