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Felda Investment Corp launches student housing property in the UK

Felda Investment Corp has diversified its portfolio with its new launch in student accommodation in the UK. FIC has been looking to diversify its portfolio from its recent focus in the hospitality industry and aims to be a prominent Malaysian investment company with wide ranging businesses globally. The company believes that this investment will yield sustainable long term  returns and will generate better returns on investment.

Felda Investment Corp (FIC) has launched its £58.5 million ($9.05 million) property in London, marking its foray into the UK market for student accommodation. FIC, a subsidiary of the Federal Land Development Authority (Felda), has been working on diversifying its investment assets from its current hospitality focus. It aims to become a prominent Malaysian investment firm with wide ranging businesses globally.


The UK property – Felda House Wembley– was officially opened on Thursday, a year since its construction started in October 2014. The property was completed in July, and is FIC’s third property investment in London. Felda group chairman Mohd Isa Abdul Samad noted that the investment in student accommodation segment is timely and strategic, as this segment has been steadily emerging over the years as a significant mainstream global investment category.


“(It has been) attracting strong interest from investors, particularly institutional investors due to the attractive potential returns and value,” he told the media at the opening.


Samad said he believes the UK investment will yield sustainable long-term returns and will generate better returns on investment. The two factors, he pointed out, bolstering the investment are the stronger foreign currency compared with the Malaysian Ringgit, and that London continues to grow its reputation as one of the most preferred location for higher education globally, thus the supply-demand imbalance in student housing is expected to grow.


Samad added that the opening of Felda House Wembley is “an extension of Felda’s strong presence in the hospitality industry, adding to current momentum both locally and internationally”. Felda currently owns 12 hotels and resorts, including Grand Plaza Serviced Apartments and Grand Plaza Kensington, both in London.


The property is already in operation and has secured almost 100 per cent occupancy. There are 450 fully furnished studio units and en-suite rooms with communal kitchens and living rooms. Located in the heart of Wembley, Felda House Wembley is strategically near colleges and universities in Central London, such as London School of Economics, University College London and University of Westminster.


Source : Deal Street Asia


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