Wee Hur to divest PBSA portfolio for A$1.6 bil
The transaction is set to be completed throughout the upcoming 6 months, based on Greystar getting Foreign Investment Review Board (FIRB) confirmations and Wee Hur getting authorization from its shareholders.
The purchase also supports Wee Hur’s long-term strategy and ongoing initiatives to expand its profile and position the team for maintainable growth throughout multiple sectors, includes Wee Hur.
Goh Wee Ping, Chief Executive Officer of Wee Hur Capital, states: “In 2021/2022, amidst international worry, we acted decisively to protect liquidity and certainty with our effective wrap-up with RECO. Two years afterwards, as the PBSA market recoiled and our portfolio approached full stabilisation, we capitalised on yet another opportunity to unlock maximum value for our stakeholders with this landmark agreement.”
According to the group, the net proceeds of about $320 million is expected to go towards Wee Hur’s strategic development, maintain its reinvestment in core business, and expansion right into new areas such as another assets.
Following the transaction, Wee Hur is set to retain a 13% stake through its subsidiary, Wee Hur (Australia).
Wee Hur Holdings has taken part in a joining agreement to offer its accounts of seven purpose-built student accommodation (PBSA) properties to Greystar, according to a Dec 16 launch.
The group’s PBSA profile, that extends over 5,500 bedrooms over numerous Australian metros, has a purchase consideration of A$ 1.6 billion ($ 1.4 billion).
The group says the purchase reflects Wee Hur’s “strength in navigating intricate market conditions”, involving the obstacles posed by Covid-19 and greenfield growths.
