Wee Hur Sells Australian-Focused PBSA Portfolio for A$1.6 Billion
Wee Hur Confirms Sale of Australian-Focused PBSA Portfolio
Wee Hur has confirmed earlier reports that it will be selling its Australian-focused purpose-built student accommodation (PBSA) portfolio for A$1.6 billion (S$1.4 billion). In its latest bourse filings on Monday (Dec 16), the company stated that the fund’s trustee, Perpetual Corporate Trust, agreed to sell all seven of its assets in the PBSA portfolio to global real estate investor Greystar.
Successful Execution of Long-Term Strategy
This marks the successful execution of Wee Hur’s long-term strategy in the PBSA sector, said the company in a statement. The sale announcement comes two months after it refuted an Oct 15 article in The Australian Financial Review, which reported that Greystar was acquiring its PBSA business in Australia.
Transaction Details
The property company holds a 50.1 per cent stake in the PBSA portfolio, while GIC-linked investor Reco Weather holds the remaining 49.9 per cent. The sale involves the trustee disposing of 100 per cent of all the PBSA assets in the portfolio. Wee Hur will still retain an indirect stake because its Australia subsidiary will acquire 13 per cent of Greystar’s equity.
Wee Hur will receive proceeds of about S$320 million from the sale, pending shareholders’ consent and regulatory approvals. The company expects the transaction to be completed in the first half of 2025. Including Wee Hur’s remaining 13 per cent interest, which is being considered at S$120 million, the PBSA portfolio would be valued at S$439.9 million.
Estimated Gain of S$36.6 Million
The proposed disposal of these assets would result in an estimated gain of S$36.6 million, said the company in its bourse filings. Greystar expressed its interest in acquiring the PBSA portfolio back in October 2023. The offer from Greystar included a sale and an opportunity to be in a strategic partnership, which Wee Hur felt would enhance its position and unlock value of its remaining stake in the portfolio.
Recycling of Funds
The sale price also represents a substantial uplift in the value of the PBSA properties and would enable Wee Hur to realise part of its investment in the fund, which can then be recycled and reallocated into other investments or used for general working capital purposes. This includes reinvesting in existing businesses or exploring high-growth areas such as its new core business, KK39, which focuses on venture capital, private equity, and private-credit investments.
Conclusion
Wee Hur’s proposed divestment is the culmination of a decade of strategic growth and development. The company had entered the PBSA market with its first asset in Brisbane in 2015. The proposed divestment would deliver superior returns for its investors, said Goh Wee Ping, chief executive officer of Wee Hur’s fund management arm, Wee Hur Capital.
FAQs
Q: What is the value of the PBSA portfolio?
A: The PBSA portfolio is valued at S$439.9 million, including Wee Hur’s 13 per cent interest.
Q: Who is acquiring the PBSA portfolio?
A: Global real estate investor Greystar is acquiring the PBSA portfolio.
Q: How much will Wee Hur receive from the sale?
A: Wee Hur will receive proceeds of about S$320 million from the sale, pending shareholders’ consent and regulatory approvals.
Q: When is the transaction expected to be completed?
A: The transaction is expected to be completed in the first half of 2025.
