Wee Hur to divest PBSA portfolio for A$1.6 bil
Goh Wee Ping, Chief Executive Officer of Wee Hur Capital, states: “In 2021/2022, amid global worry, we acted decisively to protect liquidity and certainty through our successful recap with RECO. Two years eventually, as the PBSA industry rebounded and our portfolio approached full stabilisation, we capitalised on yet one more chance to unlock maximum worth for our stakeholders via this landmark agreement.”
Wee Hur Holdings has entered into a binding arrangement to market its portfolio of 7 purpose-built student accommodation (PBSA) investments to Greystar, according to a Dec 16 release.
The group states the transactions mirrors Wee Hur’s “resilience in browsing intricate market issues”, including the challenges posed by Covid-19 and greenfield growths.
Adhering to the deal, Wee Hur is readied to maintain a 13% involvement via its subsidiary, Wee Hur (Australia).
The transaction also supports Wee Hur’s long-term method and continuous efforts to diversify its account and place the group for lasting development across numerous fields, includes Wee Hur.
The team’s PBSA account, that covers over 5,500 beds over numerous Australian towns, has an acquisition consideration of A$ 1.6 billion ($ 1.4 billion).
The transaction is readied to be completed within the coming 6 months, based on Greystar acquiring Foreign Investment Review Board (FIRB) permissions and Wee Hur obtaining authorization from its shareholders.
According to the group, the net proceeds of around $320 million is assumed to go towards Wee Hur’s strategic development, maintain its reinvestment in core business, and expansion into brand-new areas such as alternative assets.
