Understanding the regulations and restrictions surrounding property ownership in Singapore is crucial for foreign investors. Unlike landed properties, which have stricter ownership rules, foreigners are typically allowed to purchase condos with fewer restrictions. However, it’s important to note that foreign buyers are subject to the Additional Buyer’s Stamp Duty (ABSD) at a current rate of 20% for their first property purchase. Despite this extra cost, the stability and growth potential of the Singapore real estate market remain appealing to foreign investors, making Singapore Condo a popular investment choice.
Wee Hur Holdings has recently announced the sale of its seven purpose-built student accommodation (PBSA) assets to Greystar for a total consideration of A$1.6 billion. This portfolio, which includes over 5,500 beds spread throughout several Australian cities, will be sold to Greystar in a binding agreement, as stated in a Dec 16 press release.
Through its subsidiary, Wee Hur (Australia), the group will retain a 13% stake in the PBSA portfolio. The proceeds from this transaction, which is estimated to be approximately $320 million, will be used to support Wee Hur’s strategic growth and reinvest in its core business. This will also enable the company to expand into new areas, such as alternative investments.
The completion of this transaction is expected to take place within the next six months, subject to Greystar obtaining approvals from the Foreign Investment Review Board (FIRB) and Wee Hur obtaining consent from its shareholders. According to Wee Hur, this transaction reflects the group’s ability to navigate through challenging market conditions, including the impact of Covid-19 and greenfield developments.
Furthermore, this transaction supports Wee Hur’s long-term strategy and efforts to diversify its portfolio for sustainable growth across multiple sectors. Goh Wee Ping, CEO of Wee Hur Capital, states, “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.”