Singapore-listed Far East Orchard has raised £100M for a new fund to develop student accommodation in the UK.

The FE UK Student Accommodation Development Fund is the firm’s first fund in the UK, although it has a significant presence in the UK student market, Mingtiandi reported. The firm has a portfolio of 16 buildings totalling 4,900 beds in the country. It also owns a 49% stake in Homes for Students, the UK’s largest independent student housing operator.

The platform manages a further 50,000 beds.

About two-thirds of the capital for the new fund came from outside investors, with Far East retaining the rest, the company said in a stock market announcement. The fund has two projects lined up: a 273-bed scheme in Glasgow and a 239-bed scheme in Manchester.

“Moving into the fee-based fund management business enables us to scale further with like-minded capital partners while deepening our recurring income base,” Far East Orchard CEO Alan Tang said in a statement.

Despite fewer overseas students coming to the UK and a slower lease-up rate for purpose-built student accommodation, global investors are still piling money into the sector.

Australian fund AustralianSuper is buying a £250M portfolio in the sector, its debut in the UK market, Green Street News reported.

Q Investment Partners, a fellow Singaporean firm, has set up two joint ventures. With other Singaporean and Malaysian partners, it will invest a total of £300M in UK student housing.