Wee Hur to divest PBSA portfolio for A$1.6 bil
The transaction additionally supports Wee Hur’s long-term method and ongoing initiatives to broaden its portfolio and position the group for lasting development throughout multiple sectors, includes Wee Hur.
The group’s PBSA portfolio, that extends over 5,500 bedrooms over numerous Australian metros, has an acquisition consideration of A$ 1.6 billion ($ 1.4 billion).
Goh Wee Ping, Chief Executive Officer of Wee Hur Capital, says: “In 2021/2022, in the middle of global worry, we acted emphatically to protect liquidity and assurance through our effective wrap-up with RECO. Two years later, as the PBSA industry rebounded and our portfolio came close to complete stabilisation, we capitalised on yet an additional chance to unlock maximum value for our stakeholders via this landmark proceeding.”
Adhering to the deal, Wee Hur is set to retain a 13% involvement with its subsidiary, Wee Hur (Australia).
Wee Hur Holdings has taken part in a binding agreement to offer its account of seven purpose-built student accommodation (PBSA) assets to Greystar, according to a Dec 16 release.
According to the group, the net proceeds of around $320 million is assumed to go towards Wee Hur’s strategic growth, sustain its reinvestment in core business, and expansion into new areas such as alternative assets.
The group states the transactions shows Wee Hur’s “resilience in browsing complicated industry situations”, involving the challenges posed by Covid-19 and greenfield growths.
The proceeding is readied to be finished throughout the upcoming six months, based on Greystar acquiring Foreign Investment Review Board (FIRB) confirmations and Wee Hur obtaining consent from its shareholders.
