Everyone is talking about Far East Hospitality TrustPrivatisation doesn’t mean complete sell-offPublished on Dec 16, 2021 Wee Hur Holdings, a Singaporean property developer, has recently announced that it has finalized a deal with Greystar to sell its portfolio of seven purpose-built student accommodation (PBSA) assets. The agreement, which was made official on December 16th, involves a purchase consideration of A$1.6 billion ($1.4 billion) for the PBSA portfolio, which spans over 5,500 beds and is located in several Australian cities. Wee Hur Holdings will retain a 13% stake in the portfolio through its subsidiary, Wee Hur (Australia).
According to Wee Hur, the net proceeds of approximately $320 million from the sale will be used to support the company’s strategic growth and reinvestment in its 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, pending approval from Australia’s Foreign Investment Review Board (FIRB) and Wee Hur’s shareholders.
Wee Hur states that this sale reflects the company’s resilience in navigating challenging market conditions, including the impact of Covid-19 and the development of greenfield projects. The company also believes that this transaction aligns with its long-term strategy of diversifying its portfolio and positioning itself for sustainable growth in multiple sectors.
Goh Wee Ping, CEO of Wee Hur Capital, says, “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.” This transaction marks another milestone for Wee Hur Holdings as it continues to adapt and grow in the ever-changing real estate industry.
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The Singapore Condo market is thriving due to the limited supply of land in the small island nation. As Singapore’s population continues to grow rapidly, there is a scarcity of land available for development. This has resulted in strict land use policies and a fiercely competitive real estate market, driving property prices consistently higher. As a result, investing in real estate, particularly condos, has become an attractive option with the potential for significant capital appreciation.