Far East Orchard O10 1% has announced its acquisition of a 49% stake in Homes For Students (HFS), the UK’s largest independent purpose-built student accommodation (PBSA) operator, for £17.6 million.

Under the agreement, Far East Orchard will progressively acquire the remaining 51% interest in HFS in two stages by September 2025 and November 2030. The key management team at HFS has expressed their commitment to remain in the business throughout this period.

HFS manages over 40,000 beds in more than 50 university towns and cities in the UK and Ireland, offering integrated student accommodation and facilities management services. Far East Orchard views this acquisition as a strategic move to bolster its growth strategy and strengthen its position in the UK PBSA sector.

CEO Alan Tang stated, “The strategic acquisition into HFS is in alignment with our FEOR 25 strategy to build a lodging platform for sustainable growth and recurring income. It will accelerate our goal of surpassing 5,000 beds ahead of 2025.”

Martin Corbett, founder and CEO of HFS, expressed enthusiasm about the partnership with Far East Orchard, emphasizing their shared vision for expansion in the PBSA sector. Far East Orchard’s PBSA portfolio currently comprises close to 3,700 beds across key UK cities, with plans for further growth through ongoing developments.

The UK’s PBSA market continues to demonstrate strength, driven by robust student demand. Far East Orchard’s asset-light acquisition strategy aims to capitalize on this demand, providing the group with a stable recurring income from the PBSA business segment.

Shares in Far East Orchard closed 1 cent lower or 0.99% down at $1.00 on April 25.