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Wee Hur Holdings has announced that it has entered into a binding agreement to sell its portfolio of seven purpose-built student accommodation (PBSA) assets to Greystar for A$1.6 billion ($1.4 billion). The portfolio consists of over 5,500 beds in various Australian cities.
Upon completion of the transaction, Wee Hur will retain a 13% stake in the PBSA portfolio through its subsidiary Wee Hur (Australia). The net proceeds of approximately $320 million will be utilized towards Wee Hur’s growth strategy, reinvestment in its core business, and expansion into new areas such as alternative investments.
The transaction is expected to be completed within the next six months, subject to Greystar obtaining approvals from the Foreign Investment Review Board (FIRB) and Wee Hur obtaining consent from its shareholders. This deal reflects Wee Hur’s resilience in navigating difficult market conditions, including the challenges brought by the Covid-19 pandemic and greenfield developments.
CEO of Wee Hur Capital, Goh Wee Ping, stated that the company has been proactive in securing liquidity and certainty during these uncertain times, and this transaction is a result of their successful recap with RECO in 2021/2022. He also mentioned that this transaction aligns with the company’s long-term strategy and efforts to diversify its portfolio for sustainable growth across various sectors.
Wee Hur’s shares surged by 11% following the announcement of the disposal of its stake in the Australia PBSA portfolio. The company has been making strategic moves in recent years, shifting its focus from residences to workers’ dorms and student housing. In the real estate industry, building contractors are often overlooked, but Wee Hur has proven to be successful in navigating the market and seizing opportunities for growth.