Huge sale for Wee Hur as it sheds its PBSA assets for A$1.6 bil
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Wee Hur Holdings has recently announced that it has reached a binding agreement with Greystar to sell its portfolio of purpose-built student accommodation (PBSA) assets consisting of seven properties. These assets, located in various cities across Australia, have a combined total of 5,500 beds and have been valued at A$1.6 billion ($1.4 billion). The sale is expected to be completed within the next six months, subject to approvals from both the Foreign Investment Review Board (FIRB) and Wee Hur’s shareholders. Upon completion, Wee Hur will retain a 13% stake in the portfolio through its subsidiary, Wee Hur (Australia).
Wee Hur has stated that the net proceeds from the sale, estimated to be around $320 million, will be used to support the company’s strategic growth and reinvestment into its core business, as well as expansion into new areas such as alternative investments.
According to the company, the sale of its PBSA portfolio showcases its resilience in navigating through challenging market conditions, including the impact of the COVID-19 pandemic and greenfield developments. It also aligns with Wee Hur’s long-term strategy of diversifying its portfolio and positioning itself for sustainable growth across multiple sectors.
Wee Ping Goh, CEO of Wee Hur Capital, commented on the transaction, saying, “In 2021/2022, amidst global uncertainty, we acted decisively to secure liquidity and certainty through our successful recap with RECO. Two years later, as the PBSA market rebounded and our portfolio approached full stabilisation, we capitalised on yet another opportunity to unlock maximum value for our stakeholders through this landmark transaction.”
The sale of Wee Hur’s PBSA assets marks another milestone for the company, following the successful recapitalisation with RECO in 2021/2022. It also reflects the company’s continuous efforts to adapt and evolve in the ever-changing real estate market.