In a press release on December 16, Wee Hur Holdings announced that it has signed a binding agreement to sell its portfolio of seven purpose-built student accommodation (PBSA) assets to Greystar. The group’s PBSA portfolio, which consists of over 5,500 beds in various cities across Australia, has a purchase price of A$1.6 billion ($1.4 billion). The transaction is set to be completed within the next six months, subject to Greystar obtaining Foreign Investment Review Board (FIRB) approvals and Wee Hur obtaining consent from its shareholders. After the sale is finalized, Wee Hur will retain a 13% stake through its subsidiary, Wee Hur (Australia). The group expects to receive approximately $320 million in net proceeds, which will be used to support its strategic growth, reinvest in its core business, and expand into new areas such as alternative investments.
Wee Hur sees this transaction as a testament to the group’s ability to navigate complex market conditions, including the challenges posed by Covid-19 and greenfield developments. It also aligns with the group’s long-term strategy of diversifying its portfolio and positioning itself for sustainable growth in multiple sectors. Goh Wee Ping, CEO of Wee Hur Capital, states, “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.”