Wee Hur to divest PBSA portfolio for A$1.6 bil
The group’s PBSA portfolio, that extends over 5,500 bedrooms over a number of Australian metros, has a purchase consideration of A$ 1.6 billion ($ 1.4 billion).
Goh Wee Ping, Chief Executive Officer of Wee Hur Capital, claims: “In 2021/2022, amid global worry, we acted decisively to safeguard liquidity and certainty with our effective recap with RECO. 2 years later, as the PBSA industry rebounded and our profile came close to complete stabilisation, we capitalised on yet an additional possibility to unlock optimum value for our stakeholders via this landmark sale.”
The group says the transaction mirrors Wee Hur’s “durability in navigating intricate industry issues”, including the difficulties posed by Covid-19 and greenfield developments.
The transactions is set to be completed throughout the next 6 months, subject to Greystar acquiring Foreign Investment Review Board (FIRB) approvals and Wee Hur getting green light from its investors.
Wee Hur Holdings has taken part in a joining contract to offer its portfolio of 7 purpose-built student accommodation (PBSA) assets to Greystar, according to a Dec 16 launch.
Following the transaction, Wee Hur is readied to hold a 13% involvement through its subsidiary, Wee Hur (Australia).
The purchase additionally supports Wee Hur’s long-term approach and ongoing initiatives to diversify its accounts and place the team for sustainable growth throughout several fields, adds Wee Hur.
According to the group, the net profits of approximately $320 million is assumed to go in the direction of Wee Hur’s strategic growth, assist its reinvestment in core business, and expansion right into new areas such as alternative assets.
