Wee Hur to divest PBSA portfolio for A$1.6 bil
The purchase also sustains Wee Hur’s long-term approach and continuous initiatives to diversify its portfolio and place the team for lasting growth across multiple fields, includes Wee Hur.
Adhering to the transaction, Wee Hur is readied to retain a 13% involvement with its subsidiary, Wee Hur (Australia).
The group says the sale shows Wee Hur’s “strength in browsing complex market problems”, including the obstacles posed by Covid-19 and greenfield developments.
Goh Wee Ping, CEO of Wee Hur Capital, claims: “In 2021/2022, in the middle of international unpredictability, we acted emphatically to secure liquidity and assurance with our successful recap with RECO. 2 years eventually, as the PBSA market recoiled and our portfolio came close to full stabilisation, we capitalised on yet one more opportunity to unlock optimum value for our stakeholders via this landmark proceeding.”
The team’s PBSA profile, which extends over 5,500 bedrooms over several Australian cities, has an acquisition consideration of A$ 1.6 billion ($ 1.4 billion).
According to the group, the net profits of around $320 million is anticipated to go towards Wee Hur’s calculated growth, assist its reinvestment in core business, and expansion right into brand-new areas such as another assets.
The transactions is readied to be completed within the next six months, based on Greystar acquiring Foreign Investment Review Board (FIRB) permissions and Wee Hur getting green light from its investors.
Wee Hur Holdings has recently become part of a binding agreement to offer its account of seven purpose-built student accommodation (PBSA) properties to Greystar, according to a Dec 16 release.
