Wee Hur to divest PBSA portfolio for A$1.6 bil
The transaction is readied to be completed within the next 6 months, based on Greystar obtaining Foreign Investment Review Board (FIRB) approvals and Wee Hur getting green light from its shareholders.
Wee Hur Holdings has recently taken part in a joining contract to offer its account of seven purpose-built student accommodation (PBSA) assets to Greystar, according to a Dec 16 release.
The group claims the purchase reflects Wee Hur’s “resilience in navigating intricate market conditions”, involving the obstacles posed by Covid-19 and greenfield developments.
Adhering to the transaction, Wee Hur is set to hold a 13% involvement through its subsidiary, Wee Hur (Australia).
According to the group, the net earnings of about $320 million is projected to go towards Wee Hur’s calculated growth, maintain its reinvestment in core business, and expansion into brand-new areas such as alternative assets.
The group’s PBSA account, which spans over 5,500 bedrooms over a number of Australian towns, has an acquisition consideration of A$ 1.6 billion ($ 1.4 billion).
Goh Wee Ping, Chief Executive Officer of Wee Hur Capital, claims: “In 2021/2022, in the middle of worldwide uncertainty, we acted emphatically to safeguard liquidity and certainty through our effective recap with RECO. 2 years afterwards, as the PBSA market recoiled and our portfolio came close to complete stabilisation, we capitalised on yet another possibility to unlock maximum value for our stakeholders via this landmark transaction.”
The transaction additionally sustains Wee Hur’s long-term approach and recurring efforts to broaden its account and position the team for lasting development throughout several markets, includes Wee Hur.
