Far East Orchard announced on October 5 that it will acquire an additional 42% stake in the management company of Far East Hospitality Trust (FEHT), raising its ownership from 33% to 75%. The transaction, valued at $28.3 million, is expected to increase the company’s core assets under management (AUM) to approximately $3.9 billion, surpassing its initial $3 billion target by four years.
FEHT is a hospitality stapled group with a market capitalization of around $1.25 billion, consisting of Far East Hospitality Real Estate Investment Trust (FEH-REIT) and Far East Hospitality Business Trust (FEH-BT). The portfolio includes 13 properties, with 12 located in Singapore and one hotel in Japan.
Far East Orchard stated that the acquisition aligns with its “FEOR30” business road map, which aims to accelerate its growth strategy. By obtaining effective control of FEHT’s managers, the company’s core AUM will increase by nearly 86%, rising from $2.1 billion to $3.9 billion. This milestone supports an updated target of achieving at least $5 billion in core AUM by the financial year 2030.
Alan Tang, group chief executive of Far East Orchard, described the acquisition as a strategic move to build a fully integrated lodging platform. He highlighted that the deal will expand the company’s recurring income base and diversify growth avenues by enabling capital recycling and capital-light AUM expansion, alongside its existing private fund platform. Tang added that this increased flexibility would position Far East Orchard to accelerate growth, strengthen earnings resilience, and optimize value across the asset lifecycle.
The $28.3 million purchase price will be paid entirely in cash, funded from the company’s internal resources. Under the terms of the transaction, FEO Hospitality Asset Management will distribute a dividend in specie consisting of approximately 165.2 million FEHT stapled securities to its shareholders.
Following the announcement, Far East Orchard’s shares rose by one cent, or 1%, closing at $1.07 on October 5.