Wee Hur to divest PBSA portfolio for A$1.6 bil
According to the group, the net earnings of roughly $320 million is assumed to go towards Wee Hur’s strategic growth, support its reinvestment in core business, and expansion right into new areas such as different assets.
Adhering to the transaction, Wee Hur is readied to hold a 13% involvement via its subsidiary, Wee Hur (Australia).
Goh Wee Ping, CEO of Wee Hur Capital, claims: “In 2021/2022, amidst international worry, we acted emphatically to safeguard liquidity and certainty through our effective wrap-up with RECO. Two years later, as the PBSA market recoiled and our profile approached complete stabilisation, we capitalised on yet one more chance to unlock maximum value for our stakeholders via this landmark agreement.”
The transactions is readied to be completed throughout the next six months, subject to Greystar obtaining Foreign Investment Review Board (FIRB) permissions and Wee Hur getting green light from its shareholders.
The group’s PBSA profile, which extends over 5,500 beds over numerous Australian towns, has a purchase consideration of A$ 1.6 billion ($ 1.4 billion).
The transaction also supports Wee Hur’s long-term strategy and recurring initiatives to expand its accounts and place the team for maintainable development throughout several markets, includes Wee Hur.
The group says the transaction shows Wee Hur’s “durability in browsing complicated industry issues”, involving the challenges posed by Covid-19 and greenfield growths.
Wee Hur Holdings has recently entered into a joining agreement to offer its portfolio of 7 purpose-built student accommodation (PBSA) investments to Greystar, according to a Dec 16 launch.
