Wee Hur to divest PBSA portfolio for A$1.6 bil
According to the group, the net proceeds of roughly $320 million is expected to go towards Wee Hur’s strategic development, sustain its reinvestment in core business, and expansion into new locations such as alternative assets.
Goh Wee Ping, Chief Executive Officer of Wee Hur Capital, says: “In 2021/2022, in the middle of global worry, we acted emphatically to secure liquidity and certainty via our successful recap with RECO. 2 years later, as the PBSA industry recoiled and our profile approached full stabilisation, we capitalised on yet one more chance to unlock maximum value for our stakeholders via this landmark agreement.”
The deal additionally supports Wee Hur’s long-term method and recurring efforts to expand its profile and position the team for maintainable development across several fields, includes Wee Hur.
The group says the purchase shows Wee Hur’s “resilience in browsing intricate market conditions”, involving the challenges posed by Covid-19 and greenfield growths.
The transactions is set to be completed throughout the upcoming six months, subject to Greystar obtaining Foreign Investment Review Board (FIRB) approvals and Wee Hur getting green light from its investors.
Wee Hur Holdings has joined a joining contract to offer its accounts of seven purpose-built student accommodation (PBSA) investments to Greystar, according to a Dec 16 launch.
The group’s PBSA profile, which spans over 5,500 bedrooms over several Australian towns, has an acquisition consideration of A$ 1.6 billion ($ 1.4 billion).
Adhering to the transaction, Wee Hur is readied to keep a 13% involvement via its subsidiary, Wee Hur (Australia).
