Wee Hur to divest PBSA portfolio for A$1.6 bil
The deal also sustains Wee Hur’s long-term approach and recurring efforts to broaden its account and place the team for sustainable development across several markets, adds Wee Hur.
Wee Hur Holdings has already taken part in a joining arrangement to offer its portfolio of seven purpose-built student accommodation (PBSA) assets to Greystar, according to a Dec 16 release.
Goh Wee Ping, CEO of Wee Hur Capital, states: “In 2021/2022, in the middle of global uncertainty, we acted decisively to safeguard liquidity and assurance via our effective wrap-up with RECO. Two years afterwards, as the PBSA market recoiled and our profile approached complete stabilisation, we capitalised on yet an additional opportunity to unlock maximum value for our stakeholders through this landmark transaction.”
According to the group, the final earnings of approximately $320 million is anticipated to go towards Wee Hur’s calculated growth, support its reinvestment in core business, and expansion into new locations such as alternative assets.
Following the deal, Wee Hur is readied to hold a 13% involvement through its subsidiary, Wee Hur (Australia).
The proceeding is set to be completed within the coming six months, based on Greystar acquiring Foreign Investment Review Board (FIRB) permissions and Wee Hur getting consent from its investors.
The group states the transactions reflects Wee Hur’s “strength in navigating complex industry issues”, involving the challenges posed by Covid-19 and greenfield developments.
The group’s PBSA portfolio, that spans over 5,500 bedrooms over several Australian towns, has a purchase consideration of A$ 1.6 billion ($ 1.4 billion).
