Wee Hur to buy Adelaide property for A$6m for redevelopment to student housing

WEE Hur Holdings on Tuesday said it is looking to buy a property at 89-109 Gray Street, Adelaide in Australia for A$5.995 million (S$6.36 million) plus GST.

The office warehouse building sits on freehold land between the main thoroughfares of Currie Street and Waymouth Street, in the north-western quadrant of the Adelaide CBD.

The property has been owner-occupied since the 1970s but will be delivered with vacant possession at settlement. It has a large total site area of about 2,466 square metres. The group intends to develop it into a purpose-built student accommodation, from which it can then collect passive recurring rental income.

The seller is James Richardson Wines & Spirits, an unrelated and independent party. The consideration will be wholly paid in cash and funded by internal resources.

The proposed acquisition is not expected to have a material impact on the earnings per share and net tangible assets per share of the group for the current financial year ending Dec 31, 2017.