Wee Hur to divest PBSA portfolio for A$1.6 bil
Wee Hur Holdings has recently joined a joining arrangement to market its accounts of 7 purpose-built student accommodation (PBSA) properties to Greystar, according to a Dec 16 release.
According to the group, the final profits of roughly $320 million is assumed to go in the direction of Wee Hur’s strategic growth, support its reinvestment in core business, and expansion right into new locations such as different investments.
The group’s PBSA portfolio, that extends over 5,500 beds over several Australian cities, has an acquisition consideration of A$ 1.6 billion ($ 1.4 billion).
Adhering to the deal, Wee Hur is set to maintain a 13% stake with its subsidiary, Wee Hur (Australia).
Goh Wee Ping, Chief Executive Officer of Wee Hur Capital, says: “In 2021/2022, amid global worry, we acted decisively to protect liquidity and certainty with our successful recap with RECO. 2 years later, as the PBSA market rebounded and our portfolio came close to complete stabilisation, we capitalised on yet an additional opportunity to unlock optimum value for our stakeholders with this landmark sale.”
The transaction is set to be finished within the coming 6 months, based on Greystar acquiring Foreign Investment Review Board (FIRB) approvals and Wee Hur acquiring green light from its investors.
The transaction even supports Wee Hur’s long-term approach and continuous efforts to expand its portfolio and place the group for lasting development throughout numerous industries, adds Wee Hur.
The group states the transactions shows Wee Hur’s “strength in navigating complex industry problems”, involving the obstacles posed by Covid-19 and greenfield developments.
