Posted on January 1, 2022Wee Hur Holdings has agreed to sell its portfolio of seven purpose-built student accommodation (PBSA) assets to Greystar for A$1.6 billion ($1.4 billion). The sale, which is expected to be completed within the next six months, will see Wee Hur retain a 13% stake in the portfolio through its subsidiary, Wee Hur (Australia).
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Wee Hur Holdings, a leading property developer, has announced the sale of its portfolio of seven purpose-built student accommodation (PBSA) assets to Greystar for A$1.6 billion ($1.4 billion). This deal, which is expected to be completed within the next six months, will see Wee Hur retain a 13% stake in the portfolio through its subsidiary, Wee Hur (Australia).
With a total of over 5,500 beds in several Australian cities, Wee Hur’s PBSA portfolio has been a major contributor to the group’s success. However, the decision to sell the portfolio reflects the company’s long-term strategy and ongoing efforts to diversify its portfolio and position itself for sustainable growth in multiple sectors.
The net proceeds from the sale, which are estimated to be around $320 million, will be used to support Wee Hur’s strategic growth, reinvest in its core businesses, and expand into new areas such as alternative investments. This will not only increase the company’s liquidity but also provide it with the necessary resources to navigate through uncertain market conditions.
The sale also highlights Wee Hur’s resilience in tackling challenges posed by the Covid-19 pandemic and greenfield developments. The company has successfully weathered these difficulties, and this transaction is a testament to its ability to adapt and thrive in complex market conditions.
Goh Wee Ping, CEO of Wee Hur Capital, says, “In 2021/2022, amidst global uncertainty, we acted decisively to secure liquidity and certainty through our successful recap with RECO. Two years later, as the PBSA market rebounded and our portfolio approached full stabilisation, we capitalised on yet another opportunity to unlock maximum value for our stakeholders through this landmark transaction.”
The sale is subject to Greystar obtaining Foreign Investment Review Board (FIRB) approvals and Wee Hur obtaining consent from its shareholders. Wee Hur has assured that it will work closely with all parties involved to complete the transaction within the stipulated timeline.
This latest development marks another significant milestone for Wee Hur as it continues to strengthen its position in the real estate market. It also demonstrates the company’s commitment to delivering value to its stakeholders and pursuing growth opportunities.