FAR East Orchard has entered into an agreement through a subsidiary to buy a plot of land in Glasgow, with the intention to develop it into a 273-bed purpose-built student accommodation by 2026.
Osborne Street Development, which is a partnership between Far East Orchard and Woh Hup Holdings, will purchase the site in central Glasgow, Scotland for £3 million (S$5.1 million), said Far East Orchard on Tuesday (Mar 12).
The acquisition and the £38.9 million development costs will be funded by the partners in proportion to their interest in the limited partnership.
Osborne Street Development has appointed the seller, Nova Osbourne, as the development manager for the purpose-built student accommodation.
The acquisition is the property company’s maiden venture in Scotland.
Completion of the purchase is conditional upon no successful judicial review being received on the planning permission.
The acquisition is expected to have no material impact on the consolidated net earnings per share and consolidated net tangible assets per share of Far East Orchard.
Shares of Far East Orchard were unchanged at S$1.01 on Tuesday, before the announcement was made.
