Wee Hur to divest PBSA portfolio for A$1.6 bil
The transactions is set to be completed throughout the next six months, subject to Greystar acquiring Foreign Investment Review Board (FIRB) approvals and Wee Hur acquiring consent from its shareholders.
The purchase even supports Wee Hur’s long-term method and recurring efforts to diversify its profile and position the team for sustainable development across multiple markets, adds Wee Hur.
The group says the transactions mirrors Wee Hur’s “strength in browsing complicated industry problems”, involving the challenges posed by Covid-19 and greenfield growths.
According to the group, the final earnings of about $320 million is assumed to go in the direction of Wee Hur’s calculated development, support its reinvestment in core business, and expansion into new areas such as alternative assets.
Goh Wee Ping, CEO of Wee Hur Capital, says: “In 2021/2022, in the middle of international unpredictability, we acted decisively to protect liquidity and assurance with our successful wrap-up with RECO. 2 years eventually, as the PBSA industry rebounded and our portfolio approached full stabilisation, we capitalised on yet one more opportunity to unlock optimum worth for our stakeholders via this landmark sale.”
The team’s PBSA profile, that extends over 5,500 beds over several Australian towns, has a purchase consideration of A$ 1.6 billion ($ 1.4 billion).
Adhering to the transaction, Wee Hur is readied to retain a 13% involvement with its subsidiary, Wee Hur (Australia).
Wee Hur Holdings has entered into a binding agreement to market its account of 7 purpose-built student accommodation (PBSA) investments to Greystar, according to a Dec 16 launch.
