Wee Hur’s diversified fund management platform has also seen success with a proven track record of delivering returns.
The group launched a PBSA fund in 2016 targeting A$350 million in investments, developing 5,000 beds across major Australian cities. The group sold 49.9% of the fund to a GIC-linked investor in 2022. Wee Hur divested seven Y-Suites properties, or 5,662 beds to Greystar Group for a gross selling price of A$1.6 billion ($1.44 billion) in April 2025. The transaction brought the group an estimated gain on disposal of $37 million. Following the sale, the group is left with a 13% stake which it can exit if opportunities arise.
At the moment, Wee Hur is ramping up its PBSA operations with Fund II and Funnd III, anchored by the 409-bed Y Suites on Margaret Sydney and the 708-bed PBSA development in Grenfell, Adelaide. The group has retained minority stakes in both projects. “The fund management platform drives recurring fee income and scalable growth through an asset-light model, capturing upside while minimising balance sheet development,” the analysts write.
Finally, the group’s workers’ dormitory segment is poised to see significant revenue uplift. Its Tuas View Dormitory, Singapore’s largest purpose-built dormitory achieved 95% occupancy in FY2025 while the newly completed 10,500-bed Pioneer Lodge has a committed occupancy rate of 67% and is expected to achieve full occupancy by the year-end. The latter should contribute $30 million to $40 million in FY2026, lifting the segment to a record revenue run rate.
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The analysts have initiated a target price of 90 cents, which represents a 32% upside to Wee Hur’s last-closed price of 68 cents as at April 10. The sum-of-the-parts (SOTP) valuation values the dormitory and construction segments at four times P/E and eight times P/E respectively, or a valuation of $1.06 per share.
Key risks, in the analysts’ view, include rising construction costs due to the tensions in the Middle East, as well as changes to Australia’s student visa policies or international enrolment caps.
As at 4.30pm, shares in Wee Hur are trading 4 cents higher or 5.88% up at 72 cents.
