Singapore developer to build 5000 student beds Down Under
Singapore-listed developer Wee Hur has created a specific trust to fund and build 5000 student accommodation beds in Australia’s major cities, using its existing Brisbane and Adelaide sites as the first tranche.
In an announcement to Singapore Exchange, Wee Hur said a subsidiary, the Wee Hur Master Trust, would acquire land in Australia that “the company identifies to be suitable for development into purpose-built student accommodation” and seek to undertake an investment drive.
It intends to undertake a “private placement exercise” to meet the criteria of a managed investment trust in Australia, to be eligible for tax concessions and to raise funds.
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The statement said the trust would then seek to issue units and junior bonds to investors with a minimum committed capital of $1.75 million, comprising 5000 units at $1 and 1745 junior bonds at $1000.
Wee Hur currently retains about 92.85% of the master trust. Four directors of Wee Hur have entered into the trust through special purpose vehicles. The company ultimately aims to retain 60% of the trust.
“To kickstart the placement exercise and to demonstrate to potential investors of the commitment of the interested persons towards the Wee Hur PBSA master trust … (the directors) have undertaken the subscription,” Wee Hur says.
Wee Hur has transferred its flagship development site for 1500 student rooms in Buranda, Brisbane, into the master trust. Wee Hur has built about 40% of its first stage of the Brisbane Buranda UniLodge@Park Central, which will ultimately comprise 1578 student rooms, 12 office tenancies for shops and restaurants and a podium level.
Wee Hur acquired the 3796sqm suite from Anthony John Group in 2015 for $51.3 million. It said the land value at March 31 was valued at $64.3 million.
Wee Hur has since bought sites in Brisbane city and Adelaide for student accommodation developments.
Deep-pocketed investors have piled into the student accommodation sector in recent years to service the education industry.
Private equity firm Valparaiso Capital Partners will open its newly built 41-storey Wharf St accommodation in Brisbane’s CBD next week.
Dutch investor Bouwinvest and Hong Kong’s ICBC are funding student provider Scape and ASX-listed Blue Sky Alternative Investments has been active in the market, backed in the student sector by Goldman Sachs.
This article originally appeared on www.theaustralian.com.au/property.
