Wee Hur selling Adelaide student accommodation property for S$14.2 million
The buyer is Grenfell Trust, an indirect 90.48 per cent owned sub-trust of Wee Hur PBSA Fund III A
[SINGAPORE] Wee Hur Holdings announced that its 80 per cent owned Australian subsidiary had entered into a sale and purchase agreement for the disposal of a property located at 188 Grenfell Street in Adelaide for S$14.2 million on Oct 31.
Grenfell Trust, an indirect 90.48 per cent owned sub-trust of Wee Hur PBSA Fund III A (WHF3A) constituted on Oct 27, is the buyer of the Australian property from Anchor Urban Development, an indirectly owned Australian unit of Wee Hur, according to the bourse filings made by the property and construction group on Monday (Nov 3).
The property is a purpose built student accommodation (PBSA) with 708 beds and occupying a land area of about 868 square metres. Development works commenced in June 2025, with a targeted completion by the second half of 2027.
Assuming that the disposal had been completed on Jun 30, the estimated gain is approximately S$4.7 million. Wee Hur intends to use the net proceeds from the disposal for new investment opportunities or for other general working capital purposes.
Completion of the proposed disposal is expected to take place on Nov 28.
Wee Hur will retain an indirect 20 per cent stake in the Grenfell property after the sale, with the remaining 36.98 per cent to be held by other investors not named in the announcement, and 33.5 per cent to be held by the Goh directors and their associates.
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The proposed disposal is an attempt by Wee Hur to reduce its direct interest in the property from 80 per cent to 20 per cent, with its retained interest to be held indirectly through WHF3A.
This is an initiative to consolidate its PBSA assets under WHF3A, in line with the investment strategy of the fund, said Wee Hur in an earlier filing dated Oct 22. The disposal would also allow the group to mitigate investment risk.
Wee Hur will hold a 22.11 per cent stake in WHF3A, which was established with its wholly owned unit Wee Hur Capital as its fund manager and Wee Hur (Australia) as its sponsor.
Wee Hur closed S$0.02 or 2.7 per cent up at S$0.745 on Monday before the announcement.
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