Wee Hur to divest PBSA portfolio for A$1.6 bil
The group states the purchase shows Wee Hur’s “resilience in navigating intricate industry problems”, including the obstacles posed by Covid-19 and greenfield developments.
Goh Wee Ping, CEO of Wee Hur Capital, says: “In 2021/2022, amid worldwide uncertainty, we acted emphatically to safeguard liquidity and certainty via our effective wrap-up with RECO. 2 years eventually, as the PBSA market rebounded and our profile came close to complete stabilisation, we capitalised on yet an additional possibility to unlock optimum worth for our stakeholders via this landmark sale.”
The purchase also sustains Wee Hur’s continued technique and ongoing efforts to broaden its profile and place the team for maintainable development throughout several fields, adds Wee Hur.
The transaction is set to be completed within the next 6 months, based on Greystar acquiring Foreign Investment Review Board (FIRB) permissions and Wee Hur acquiring authorization from its investors.
According to the group, the final earnings of roughly $320 million is assumed to go towards Wee Hur’s calculated development, maintain its reinvestment in core business, and expansion right into brand-new locations such as another assets.
Following the transaction, Wee Hur is set to keep a 13% involvement through its subsidiary, Wee Hur (Australia).
The group’s PBSA account, that spans over 5,500 bedrooms over several Australian metros, has a purchase consideration of A$ 1.6 billion ($ 1.4 billion).
Wee Hur Holdings has recently joined a binding arrangement to sell its account of seven purpose-built student accommodation (PBSA) investments to Greystar, according to a Dec 16 launch.
