Wee Hur to divest PBSA portfolio for A$1.6 bil
According to the group, the net profits of about $320 million is projected to go towards Wee Hur’s strategic development, sustain its reinvestment in core business, and expansion into new locations such as different investments.
Goh Wee Ping, Chief Executive Officer of Wee Hur Capital, states: “In 2021/2022, amidst worldwide unpredictability, we acted decisively to safeguard liquidity and assurance through our effective recap with RECO. 2 years afterwards, as the PBSA industry rebounded and our portfolio approached full stabilisation, we capitalised on yet another possibility to unlock maximum value for our stakeholders with this landmark agreement.”
Wee Hur Holdings has recently become part of a binding contract to offer its portfolio of seven purpose-built student accommodation (PBSA) properties to Greystar, according to a Dec 16 release.
The proceeding is readied to be finished throughout the upcoming six months, subject to Greystar getting Foreign Investment Review Board (FIRB) confirmations and Wee Hur acquiring authorization from its investors.
The team’s PBSA portfolio, that covers over 5,500 beds over numerous Australian towns, has a purchase consideration of A$ 1.6 billion ($ 1.4 billion).
Following the transaction, Wee Hur is readied to keep a 13% involvement through its subsidiary, Wee Hur (Australia).
The purchase additionally supports Wee Hur’s continued technique and recurring initiatives to diversify its account and position the team for lasting growth throughout multiple markets, adds Wee Hur.
The group says the sale reflects Wee Hur’s “resilience in navigating complex industry issues”, involving the obstacles posed by Covid-19 and greenfield developments.
