Felda launches second student accommodation property in London

PETALING JAYA: Felda Investment Corp (FIC), the investment arm of the Federal Land Development Authority (Felda), has made its second investment in the student accommodation market in London - Grand Felda House.
The construction of Felda House Wembley, located in the heart of Wembley, was completed in July this year, at a total cost of £109.26 million, it said in a statement yesterday.
The construction of the new student housing, which is set to open in September 2016, commenced in January 2015 and boasts 802 fully furnished en-suite rooms.
To date, it has secured 40% of bookings and the number is expected to grow leading up to the new academic year.
Speaking at the official opening in Wembley last Tuesday, FGV chairman Tan Sri Datuk Mohd Isa Abdul Samad said that FIC continues to further exploit on London's stature as one of the prominent education hubs.
FGV said post-Brexit challenges which resulted in an air of uncertainties among investors and individuals alike "does not shake FIC's confidence" in the new investment.
It added that demand for education will continue and will positively impact on other education-related sectors.
Isa is also optimistic that the demand for student accommodation will continue to rise due to the drop in the pound currency as well as the removal of the student intake quota for UK universities that was announced in 2015.
FIC made its foray in the student accommodation market through Felda House in 2015.
It regarded the student housing market as one of the highest-performing real estate asset class that promises high guaranteed returns that have attracted multi-million dollar investments worldwide.
"This is in line with FIC's goal to become another large investment company in Malaysia via highly-viable diversified investments that could generate attractive returns in the long run," it said.
It is also to capitalise on the demand-supply imbalance in the student housing market in London.
Both properties are also strategically located within the ongoing Wembley Urban Regeneration project which is expected to be one of UK's most thriving areas.
Apart from the portfolio of student accommodation, Felda also owns 12 hotels and resorts, including Grand Plaza Serviced Apartments and Park City Grand Plaza Kensington, both in London.