Wee Hur to divest PBSA portfolio for A$1.6 bil
Wee Hur Holdings has recently entered into a joining agreement to sell its account of 7 purpose-built student accommodation (PBSA) assets to Greystar, according to a Dec 16 release.
The group states the transactions shows Wee Hur’s “durability in browsing complex industry conditions”, including the challenges posed by Covid-19 and greenfield developments.
The transaction even supports Wee Hur’s long-term approach and continuous efforts to diversify its portfolio and place the group for sustainable growth throughout numerous industries, includes Wee Hur.
The transactions is set to be finished within the coming six months, based on Greystar getting Foreign Investment Review Board (FIRB) confirmations and Wee Hur obtaining consent from its investors.
Goh Wee Ping, CEO of Wee Hur Capital, states: “In 2021/2022, amid worldwide worry, we acted emphatically to protect liquidity and assurance with our successful wrap-up with RECO. 2 years later, as the PBSA industry recoiled and our portfolio approached full stabilisation, we capitalised on yet another opportunity to unlock optimum worth for our stakeholders with this landmark proceeding.”
According to the group, the final earnings of approximately $320 million is expected to go towards Wee Hur’s calculated development, sustain its reinvestment in core business, and expansion into new locations such as different investments.
The team’s PBSA profile, which extends over 5,500 beds over numerous Australian cities, has a purchase consideration of A$ 1.6 billion ($ 1.4 billion).
Adhering to the transaction, Wee Hur is readied to retain a 13% stake with its subsidiary, Wee Hur (Australia).
