Wee Hur to divest PBSA portfolio for A$1.6 bil
The transactions is set to be finished within the coming six months, subject to Greystar obtaining Foreign Investment Review Board (FIRB) permissions and Wee Hur acquiring authorization from its investors.
The group states the sale mirrors Wee Hur’s “durability in browsing intricate industry issues”, including the difficulties posed by Covid-19 and greenfield growths.
Wee Hur Holdings has already taken part in a joining arrangement to offer its portfolio of 7 purpose-built student accommodation (PBSA) investments to Greystar, according to a Dec 16 release.
Adhering to the deal, Wee Hur is set to hold a 13% involvement through its subsidiary, Wee Hur (Australia).
Goh Wee Ping, Chief Executive Officer of Wee Hur Capital, claims: “In 2021/2022, amid global uncertainty, we acted decisively to safeguard liquidity and assurance with our successful recap with RECO. Two years afterwards, as the PBSA market rebounded and our profile approached complete stabilisation, we capitalised on yet another opportunity to unlock optimum value for our stakeholders with this landmark agreement.”
The purchase also sustains Wee Hur’s long-term approach and recurring efforts to diversify its accounts and place the team for lasting growth across several markets, adds Wee Hur.
The team’s PBSA account, that spans over 5,500 bedrooms over numerous Australian metros, has a purchase consideration of A$ 1.6 billion ($ 1.4 billion).
According to the group, the final earnings of around $320 million is anticipated to go in the direction of Wee Hur’s strategic development, sustain its reinvestment in core business, and expansion into new locations such as different assets.
