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

HONG KONG, July 6 : Hong Kong property developer Far East Consortium (FEC) said in a filing published on Monday that it has agreed to sell a student accommodation project to a unit of JD.com for HK$750 million ($95.63 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 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 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.

• 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 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.

($1 = 7.8429 Hong Kong dollars)