Wee Hur Holdings has recently announced that it has signed a binding agreement with Greystar for the sale of its portfolio of purpose-built student accommodation (PBSA) assets. This portfolio, which consists of seven properties across several Australian cities and provides over 5,500 beds, has a purchase consideration of A$1.6 billion ($1.4 billion).
Under the terms of the agreement, Wee Hur will retain a 13% stake through its subsidiary, Wee Hur (Australia). The net proceeds from the sale, estimated to be around $320 million, will be used to support the company’s strategic growth, reinvestment in its core business, and expansion into new areas such as alternative investments.
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The transaction is expected to be completed within the next six months, subject to Greystar obtaining approval from the Foreign Investment Review Board (FIRB) and Wee Hur obtaining consent from its shareholders. This move is seen as a reflection of Wee Hur’s ability to weather challenging market conditions, including the impact of the Covid-19 pandemic and the complexities of greenfield developments.
In addition, the sale aligns with Wee Hur’s long-term strategy of diversifying its portfolio and positioning the company for sustainable growth across multiple sectors. According to Goh Wee Ping, CEO of Wee Hur Capital, this transaction is a result of the company’s proactive approach to securing liquidity and stability, as seen in its successful recap with RECO in 2021/2022. He also mentioned that this landmark sale was made possible by the rebound of the PBSA market and the full stabilisation of the company’s portfolio.
Overall, this transaction highlights Wee Hur’s resilience and ability to make strategic moves in the ever-changing real estate market. With the company’s focus on growth and diversification, it is well-positioned to thrive in the future.