Wee Hur Holdings Announces Sale of PBSA Portfolio to Greystar
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Wee Hur Holdings has recently revealed that it has entered into a binding agreement to sell its portfolio of seven purpose-built student accommodation (PBSA) assets to Greystar. This sale, which was announced on December 16, will see Greystar acquiring the group’s PBSA portfolio, which comprises over 5,500 beds across various Australian cities, for a total consideration of A$1.6 billion ($1.4 billion).
Following the completion of the transaction, Wee Hur will retain a 13% stake in the portfolio through its subsidiary, Wee Hur (Australia). The group has stated that the net proceeds of approximately $320 million will be used towards its strategic growth, supporting its reinvestment in core business, and expanding into new areas such as alternative investments. The completion of the transaction is expected to take place within the next six months, pending approvals from the Foreign Investment Review Board (FIRB) for Greystar and consent from Wee Hur’s shareholders.
Wee Hur believes that this transaction is a testament to the group’s ability to navigate through complex market conditions, including the challenges brought about by the Covid-19 pandemic and greenfield developments. It also aligns with the group’s long-term strategy of diversifying its portfolio and positioning itself for sustainable growth in various sectors.
Goh Wee Ping, CEO of Wee Hur Capital, expressed his satisfaction with the sale and stated that it is a result of the group’s decisive actions to secure liquidity and stability in the midst of global uncertainty. He further added that the sale is a prime example of the group’s commitment to unlocking maximum value for its stakeholders.
Indeed, Wee Hur’s shares have surged by 11% after the announcement of the sale, as investors responded positively to the news. This is a significant development for the group, which has been expanding its presence in the PBSA market over the years. In addition, the sale also shows the group’s ability to adapt and capitalize on opportunities, positioning itself for sustained growth in the long run.