Wee Hur to divest PBSA portfolio for A$1.6 bil
The group says the transactions reflects Wee Hur’s “durability in browsing intricate industry issues”, involving the obstacles posed by Covid-19 and greenfield growths.
According to the group, the net profits of roughly $320 million is expected to go towards Wee Hur’s strategic growth, maintain its reinvestment in core business, and expansion right into new locations such as another assets.
The purchase also supports Wee Hur’s continued strategy and recurring initiatives to broaden its profile and position the group for sustainable development throughout multiple sectors, adds Wee Hur.
The transactions is readied to be completed within the coming six months, subject to Greystar obtaining Foreign Investment Review Board (FIRB) confirmations and Wee Hur acquiring consent from its shareholders.
The team’s PBSA account, which extends over 5,500 bedrooms over several Australian towns, has an acquisition consideration of A$ 1.6 billion ($ 1.4 billion).
Wee Hur Holdings has recently taken part in a binding arrangement to offer its portfolio of 7 purpose-built student accommodation (PBSA) assets to Greystar, according to a Dec 16 release.
Goh Wee Ping, Chief Executive Officer of Wee Hur Capital, states: “In 2021/2022, in the middle of global worry, we acted emphatically to safeguard liquidity and certainty with our effective wrap-up with RECO. 2 years later, as the PBSA industry rebounded and our portfolio came close to complete stabilisation, we capitalised on yet one more chance to unlock maximum worth for our stakeholders with this landmark sale.”
Adhering to the deal, Wee Hur is set to retain a 13% involvement through its subsidiary, Wee Hur (Australia).
