Greystar Buys A$1.6bn Australian Student Housing Assets from Wee Hur and GIC
In a significant real estate transaction, Singapore property group Wee Hur, in partnership with GIC, has divested its Australian student housing portfolio to Greystar for a substantial A$1.6 billion (€969 million). This deal marks a pivotal moment in the student accommodation sector, demonstrating the evolving landscape and investor confidence in purpose-built student accommodation (PBSA).
The portfolio comprises 5,500 beds across key Australian cities, with Wee Hur previously holding a 50.1% interest and GIC the remaining 49.9%. Despite the sale, Wee Hur has retained a 13% stake through its subsidiary, while the net proceeds, amounting to S$320 million (€226 million), will be leveraged to support the group’s strategic growth ambitions, including forays into alternative investments.
Wee Hur’s journey into the PBSA market began in 2015 when the group established its first asset in Brisbane. Building on this initial venture, the firm launched the Wee Hur PBSA Master Trust in 2016, with an ambitious target to develop a portfolio of 5,000 beds in key Australian cities.
Over the years, the portfolio attracted significant investments. Notably, in 2022, GIC’s affiliate, Reco Weather Private, acquired a 49.9% stake in the Wee Hur PBSA Master Trust for A$568 million. This strategic partnership underscored the value and potential within the growing PBSA market.
Goh Yeow Lian, Executive Chairman and Managing Director of Wee Hur Holdings, reflected on the group’s accomplishments, stating, “From venturing into an uncharted asset class to building one of Australia’s most significant PBSA portfolios, Wee Hur has demonstrated its ability to create and deliver transformative value. This achievement is a testament to the unwavering dedication of our team, partners, and stakeholders who turned challenges—including navigating new markets, managing greenfield developments, and overcoming disruptions like COVID-19—into opportunities.”
Goh Wee Ping, CEO of Wee Hur Capital, emphasized the strategic foresight and execution capabilities that marked this venture. “This divestment highlights Wee Hur Capital’s exceptional ability to execute its strategic vision and deliver superior returns for its investors, regardless of market conditions. 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 stabilization, we capitalized on yet another opportunity to unlock maximum value for our stakeholders through this landmark transaction.”
The sale to Greystar signifies the continued attractiveness of the student accommodation sector in Australia. As student populations grow and universities attract an increasing number of international students, efficient and high-quality housing solutions are in demand. This transaction reinforces the burgeoning interest from global institutional investors seeking exposure to resilient and income-generating real estate assets.
In conclusion, the strategic sale of the PBSA portfolio by Wee Hur and GIC to Greystar not only underscores the evolving dynamics of the real estate market but also highlights the strategic acumen of Wee Hur Holdings in navigating and capitalizing on market opportunities. This move sets the stage for further developmental forays and positions Wee Hur to explore new investment ventures in emerging markets.
This successful transaction showcases the collective efforts of all involved parties and reaffirms the growing opportunities within the Australian PBSA sector, providing a blueprint for future investments in this evolving market landscape.
