Wee Hur to divest PBSA portfolio for A$1.6 bil

Goh Wee Ping, Chief Executive Officer of Wee Hur Capital, states: “In 2021/2022, amidst international uncertainty, we acted decisively to protect liquidity and assurance through our successful wrap-up with RECO. Two years later, as the PBSA industry recoiled and our profile approached complete stabilisation, we capitalised on yet an additional opportunity to unlock optimum value for our stakeholders through this landmark sale.”

The purchase additionally supports Wee Hur’s long-term method and continuous efforts to diversify its accounts and place the team for lasting growth across multiple fields, adds Wee Hur.

The transaction is readied to be completed within the next six months, subject to Greystar obtaining Foreign Investment Review Board (FIRB) confirmations and Wee Hur obtaining consent from its investors.

The team’s PBSA profile, that extends over 5,500 beds over numerous Australian cities, has a purchase consideration of A$ 1.6 billion ($ 1.4 billion).

Hillock Green showflat location

Following the purchase, Wee Hur is set to keep a 13% stake via its subsidiary, Wee Hur (Australia).

According to the group, the final profits of roughly $320 million is projected to go in the direction of Wee Hur’s calculated development, support its reinvestment in core business, and expansion into brand-new locations such as another assets.

The group says the sale shows Wee Hur’s “resilience in browsing complicated industry situations”, including the challenges posed by Covid-19 and greenfield developments.

Wee Hur Holdings has recently become part of a joining agreement to market its portfolio of seven purpose-built student accommodation (PBSA) assets to Greystar, according to a Dec 16 launch.