Wee Hur to divest PBSA portfolio for A$1.6 bil
The group states the sale mirrors Wee Hur’s “strength in navigating intricate market problems”, including the difficulties posed by Covid-19 and greenfield developments.
According to the group, the net proceeds of approximately $320 million is assumed to go in the direction of Wee Hur’s calculated growth, sustain its reinvestment in core business, and expansion right into brand-new areas such as different investments.
Goh Wee Ping, CEO of Wee Hur Capital, claims: “In 2021/2022, amid international uncertainty, we acted decisively to secure liquidity and certainty via our effective recap with RECO. Two years later, as the PBSA industry recoiled and our portfolio came close to complete stabilisation, we capitalised on yet an additional possibility to unlock maximum worth for our stakeholders through this landmark transaction.”
Following the purchase, Wee Hur is readied to hold a 13% stake through its subsidiary, Wee Hur (Australia).
The group’s PBSA profile, that extends over 5,500 bedrooms over several Australian cities, has an acquisition consideration of A$ 1.6 billion ($ 1.4 billion).
Wee Hur Holdings has recently become part of a binding agreement to market its accounts of 7 purpose-built student accommodation (PBSA) investments to Greystar, according to a Dec 16 release.
The transaction also supports Wee Hur’s continued strategy and recurring initiatives to broaden its profile and place the team for maintainable growth throughout several markets, adds Wee Hur.
The transaction is set to be finished within the next 6 months, based on Greystar getting Foreign Investment Review Board (FIRB) approvals and Wee Hur acquiring consent from its investors.
