Wee Hur to divest PBSA portfolio for A$1.6 bil
Wee Hur Holdings has already joined a joining contract to market its accounts of 7 purpose-built student accommodation (PBSA) properties to Greystar, according to a Dec 16 launch.
The transaction is readied to be completed within the coming 6 months, subject to Greystar acquiring Foreign Investment Review Board (FIRB) confirmations and Wee Hur acquiring authorization from its investors.
Adhering to the purchase, Wee Hur is set to keep a 13% involvement via its subsidiary, Wee Hur (Australia).
The team’s PBSA profile, which spans over 5,500 bedrooms over a number of Australian towns, has an acquisition consideration of A$ 1.6 billion ($ 1.4 billion).
Goh Wee Ping, Chief Executive Officer of Wee Hur Capital, states: “In 2021/2022, in the middle of global uncertainty, we acted emphatically to protect liquidity and assurance via our successful wrap-up with RECO. Two years afterwards, as the PBSA industry rebounded and our profile approached complete stabilisation, we capitalised on yet one more chance to unlock maximum worth for our stakeholders through this landmark proceeding.”
The transaction also supports Wee Hur’s long-term approach and recurring initiatives to diversify its accounts and place the team for maintainable development throughout numerous markets, includes Wee Hur.
According to the group, the net profits of approximately $320 million is assumed to go towards Wee Hur’s strategic growth, sustain its reinvestment in core business, and expansion into new locations such as alternative assets.
The group says the purchase shows Wee Hur’s “resilience in browsing complex market problems”, involving the challenges posed by Covid-19 and greenfield growths.
