Wee Hur to divest PBSA portfolio for A$1.6 bil
The transactions is set to be completed within the upcoming 6 months, based on Greystar acquiring Foreign Investment Review Board (FIRB) permissions and Wee Hur obtaining green light from its investors.
The transaction even supports Wee Hur’s long-term technique and ongoing initiatives to expand its profile and place the group for lasting growth across numerous sectors, includes Wee Hur.
Wee Hur Holdings has already joined a binding arrangement to sell its accounts of 7 purpose-built student accommodation (PBSA) assets to Greystar, according to a Dec 16 launch.
The group’s PBSA account, which extends over 5,500 beds over several Australian metros, has an acquisition consideration of A$ 1.6 billion ($ 1.4 billion).
The group claims the transactions shows Wee Hur’s “resilience in navigating complicated industry issues”, involving the challenges posed by Covid-19 and greenfield developments.
Following the transaction, Wee Hur is set to keep a 13% stake through its subsidiary, Wee Hur (Australia).
According to the group, the final profits of roughly $320 million is expected to go towards Wee Hur’s strategic development, support its reinvestment in core business, and expansion into new locations such as another assets.
Goh Wee Ping, CEO of Wee Hur Capital, says: “In 2021/2022, amidst global worry, we acted decisively to safeguard liquidity and certainty via our effective wrap-up with RECO. 2 years later, as the PBSA industry recoiled and our portfolio came close to full stabilisation, we capitalised on yet another chance to unlock optimum worth for our stakeholders with this landmark proceeding.”
