Wee Hur Holdings has recently announced a significant development in its business strategy, with the binding agreement to sell its portfolio of seven purpose-built student accommodation (PBSA) assets to Greystar. This deal, which was made public on December 16, marks a major milestone for the group as it looks to focus on its core business and expand into new areas.
The PBSA portfolio, which comprises over 5,500 beds across several Australian cities, will be sold for a purchase consideration of A$1.6 billion ($1.4 billion). As part of the transaction, Wee Hur will retain a 13% stake through its subsidiary, Wee Hur (Australia).
According to the group, the net proceeds from the sale, expected to be around $320 million, will be used to drive Wee Hur’s strategic growth and support its reinvestment in the core business. It will also help the group venture into new areas such as alternative investments.
The transaction is slated to be completed in the next six months, subject to Greystar obtaining approvals from the Foreign Investment Review Board (FIRB) and Wee Hur obtaining consent from its shareholders. Wee Hur believes that this deal is a testament to the group’s resilience in navigating complex market conditions, including the challenges posed by the Covid-19 pandemic and greenfield developments.
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In addition to supporting Wee Hur’s long-term strategy, the transaction also demonstrates the group’s efforts to diversify its portfolio and position itself for sustainable growth in multiple sectors. Goh Wee Ping, CEO of Wee Hur Capital, commented, “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 news of this sale has also had a positive impact on Wee Hur’s stock, with the company’s shares surging by 11% after the announcement. This move by Wee Hur comes after it previously ventured into various sectors such as residences, workers’ dormitories, and student housing. With this latest development, it seems that the group is well-positioned to continue its growth and success in the real estate industry.