Hong Kong’s Far East Consortium sells student housing to JD.com for US$95.6 million

[HONG KONG] Hong Kong property developer Far East Consortium (FEC) said in a filing published on Monday (Jul 6) that it has agreed to sell a student accommodation project to a unit of JD.com for HK$750 million (US$95.6 million).

This is the second property JD.com has bought in Hong Kong in less than a year.

In December, it bought a 50 per cent interest in an office tower in the city’s central financial district for HK$3.5 billion from another cash-strapped developer, Lai Sun Development.

FEC said that it will continue to manage the student accommodation for three years following the completion of the sale and pay to the project a guaranteed income of HK$45 million in each of those three years.

The developer said that the deal provides an opportunity to establish a strategic relationship with the JD Group and to explore opportunities for further cooperation, including potential student accommodation projects in Hong Kong.

FEC would recognise a disposal gain of HK$423 million from the sale, and it would use the proceeds to repay an existing HK$630 million bank loan and use the remainder as working capital.

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Encouraged by a surge in non-local student demand, Hong Kong has recorded active transactions, both purchases and leasing, in the student housing segment.

Real estate consultancy Colliers said that there were HK$11.1 billion worth of education-related investments in the first five months of 2026, following HK$4 billion last year, which accounted for 11 per cent of total commercial investment volume in 2025. REUTERS