Wee Hur to divest PBSA portfolio for A$1.6 bil

Wee Hur Holdings has already taken part in a joining agreement to offer its portfolio of seven purpose-built student accommodation (PBSA) assets to Greystar, according to a Dec 16 release.

According to the group, the final proceeds of around $320 million is expected to go towards Wee Hur’s strategic growth, assist its reinvestment in core business, and expansion into new locations such as different investments.

Following the deal, Wee Hur is readied to keep a 13% involvement through its subsidiary, Wee Hur (Australia).

The transaction additionally supports Wee Hur’s long-term technique and continuous initiatives to diversify its accounts and place the team for sustainable growth across multiple fields, adds Wee Hur.

The group’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).

8@BT Bukit Sembawang Estates Limited

The group states the sale reflects Wee Hur’s “strength in navigating intricate industry problems”, including the obstacles posed by Covid-19 and greenfield developments.

The transactions is set to be completed within the coming six months, based on Greystar obtaining Foreign Investment Review Board (FIRB) confirmations and Wee Hur acquiring consent from its investors.

Goh Wee Ping, Chief Executive Officer of Wee Hur Capital, says: “In 2021/2022, amid worldwide uncertainty, we acted decisively to protect liquidity and certainty with our effective recap with RECO. Two years afterwards, as the PBSA market rebounded and our portfolio approached full stabilisation, we capitalised on yet one more possibility to unlock maximum value for our stakeholders through this landmark agreement.”