Wee Hur to divest PBSA portfolio for A$1.6 bil
Wee Hur Holdings has already taken part in a joining agreement to market its accounts of seven purpose-built student accommodation (PBSA) assets to Greystar, according to a Dec 16 release.
Following the deal, Wee Hur is readied to maintain a 13% stake via its subsidiary, Wee Hur (Australia).
According to the group, the net profits of approximately $320 million is assumed to go towards Wee Hur’s calculated growth, maintain its reinvestment in core business, and expansion into brand-new locations such as alternative assets.
The group says the transaction reflects Wee Hur’s “strength in browsing intricate industry issues”, involving the challenges posed by Covid-19 and greenfield developments.
Goh Wee Ping, Chief Executive Officer of Wee Hur Capital, says: “In 2021/2022, in the middle of global uncertainty, we acted decisively to safeguard liquidity and certainty with our effective wrap-up with RECO. 2 years eventually, as the PBSA industry rebounded and our profile approached full stabilisation, we capitalised on yet another opportunity to unlock maximum value for our stakeholders with this landmark agreement.”
The transaction is set to be completed throughout the coming six months, based on Greystar obtaining Foreign Investment Review Board (FIRB) confirmations and Wee Hur acquiring green light from its investors.
The transaction additionally supports Wee Hur’s long-term method and continuous efforts to expand its profile and place the team for sustainable development throughout several markets, includes Wee Hur.
The team’s PBSA account, which extends over 5,500 beds over several Australian towns, has an acquisition consideration of A$ 1.6 billion ($ 1.4 billion).
