Wee Hur to divest PBSA portfolio for A$1.6 bil
Following the transaction, Wee Hur is readied to maintain a 13% stake through its subsidiary, Wee Hur (Australia).
The group states the purchase reflects Wee Hur’s “resilience in navigating intricate industry conditions”, including the challenges posed by Covid-19 and greenfield growths.
Wee Hur Holdings has recently joined a joining agreement to offer its portfolio of 7 purpose-built student accommodation (PBSA) properties to Greystar, according to a Dec 16 launch.
The team’s PBSA portfolio, which extends over 5,500 beds over numerous Australian towns, has a purchase consideration of A$ 1.6 billion ($ 1.4 billion).
The transactions is set to be finished throughout the next six months, subject to Greystar acquiring Foreign Investment Review Board (FIRB) permissions and Wee Hur acquiring consent from its shareholders.
According to the group, the net proceeds of around $320 million is projected to go in the direction of Wee Hur’s strategic development, maintain its reinvestment in core business, and expansion right into brand-new locations such as different assets.
The transaction additionally sustains Wee Hur’s continued technique and recurring efforts to expand its account and position the group for sustainable growth throughout several sectors, adds Wee Hur.
Goh Wee Ping, CEO of Wee Hur Capital, states: “In 2021/2022, in the middle of worldwide uncertainty, we acted emphatically to secure liquidity and assurance through our effective recap with RECO. Two years afterwards, as the PBSA industry rebounded and our profile came close to full stabilisation, we capitalised on yet another possibility to unlock optimum value for our stakeholders through this landmark proceeding.”
