Australia’s Wee Hur Holdings sells 7 PBSA assets to Greystar for $1.4 bil
Wee Hur Holdings has recently announced the sale of its portfolio of seven purpose-built student accommodation (PBSA) assets to Greystar. The transaction, which was made public on December 16, involves the sale of over 5,500 beds across several Australian cities for a purchase consideration of A$1.6 billion ($1.4 billion). Wee Hur will retain a 13% stake in the portfolio through its subsidiary, Wee Hur (Australia).
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The group plans to use the net proceeds of approximately $320 million to support its strategic growth and reinvestment in the core business, as well as expansion into new areas such as alternative investments. The transaction is expected to be completed within the next six months, subject to Foreign Investment Review Board (FIRB) approvals for Greystar and consent from Wee Hur’s shareholders.
According to Wee Hur, the sale of its PBSA assets demonstrates the group’s resilience in navigating through challenging market conditions, including the impact of Covid-19 and greenfield developments. It also supports the group’s long-term strategy of diversifying its portfolio and positioning itself for sustainable growth across multiple sectors.
Goh Wee Ping, CEO of Wee Hur Capital, says that the group’s successful recapitalization with RECO in 2021/2022, amidst global uncertainty, has provided them with liquidity and certainty. The sale of the PBSA portfolio is yet another opportunity for the group to unlock maximum value for its stakeholders, he adds.
Wee Hur’s decision to sell its PBSA assets to Greystar comes after its successful foray into the sector in recent years. The group’s move towards alternative investments is in line with its efforts to diversify its portfolio and capitalize on emerging opportunities in the market. With this transaction, Wee Hur is well-positioned for sustainable growth and long-term success.