Far East Orchard Limited Announces Strategic Expansion and Major Acquisition

Key Highlights

• Incorporation of a New UK Subsidiary: Far East Orchard Limited has established a wholly-owned subsidiary, Far East Orchard UK Management Limited, in the United Kingdom. This new entity will serve as a head office function and is fully owned by Far East Orchard Investment Holding Pte. Ltd., itself a wholly-owned subsidiary of Far East Orchard Limited. The issued and paid-up share capital is £2.00.
• Acquisition of Additional Stake in Homes For Students Limited: Far East Student Housing Pte. Ltd. (FESH), a wholly-owned subsidiary, has completed the acquisition of an additional 35% shareholding in Homes For Students Limited (HFS). The total consideration is approximately S\$43.3 million, settled in cash from internal resources and borrowings. This increases FESH’s stake in HFS from 49% to 84%.
• HFS and Its Subsidiaries Become Group Subsidiaries: Following the acquisition, HFS and its subsidiaries—including Universal Student Living Limited, BTR PRS Ltd, Resi Software Solution Limited, and Orla Living Limited—are now subsidiaries of Far East Orchard Limited.
• Details of Subsidiaries:
  • Homes for Students Limited: UK-based, principal activity is purpose-built student accommodation. Total shares issued: 6,000; paid-up capital: £6,000.
  • Universal Student Living Limited: UK-based, principal activity is also student accommodation. Total shares issued: 100; paid-up capital: £100.
  • BTR PRS Ltd: UK-based, operates co-living and build-to-rent segments. Total A Ordinary Shares: 85 (£85); B Ordinary Shares: 15 (£15); Preference Shares: 500,000 (£500,000); Preference A Shares: 250,000 (£250,000).
  • Resi Software Solution Limited: UK-based, focuses on business and domestic software development. Total shares issued: 100; paid-up capital: £100.
  • Orla Living Limited: Ireland-based, principal activity is other accommodation. Total shares issued: 100; paid-up capital: €100.
• Financial Information: The unaudited net asset value of the additional 35% interest in HFS is £3.7 million as at 30 September 2025.
• Consideration Structure: The acquisition consideration includes a contingent component, payable upon meeting future business conditions.

Investor Impact & Price Sensitivity

The acquisition of a controlling stake in Homes For Students Limited and its subsidiaries is a significant event for Far East Orchard Limited. This move transforms HFS from an associated company to a consolidated subsidiary, which will have direct implications on the Group’s financial statements, potentially increasing both revenue and asset base. The acquisition is funded through internal resources and borrowings, indicating commitment to growth and expansion in the student accommodation and co-living sectors in the UK and Ireland.

The expansion into software development through Resi Software Solution Limited and further diversification in accommodation via Orla Living Limited suggest a strategic push beyond traditional property operations, aiming to capture growth in related industries. The inclusion of contingent consideration in the acquisition signals confidence in future performance, but also introduces potential variability in acquisition costs and future cash flows.

Shareholders should be aware that these developments could be price sensitive, as they represent a material change in the Group’s structure and exposure to new revenue streams. The acquisition may positively impact share value, especially if the new subsidiaries deliver on their business objectives and growth targets.

Conclusion

Far East Orchard Limited’s strategic moves—incorporating a UK head office and acquiring a controlling stake in a key student accommodation operator—are likely to materially affect the Group’s performance and investor sentiment. These actions mark a significant expansion in the UK and Ireland markets, broadening the Group’s portfolio and potential returns.

Disclaimer: This article is for informational purposes only. It is not investment advice and should not be relied upon as such. Investors are advised to conduct their own research and consult professional advisors before making any investment decisions.

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