Building on this, Wee Hur acquired One Bedford Place, a 26-storey Grade-A commercial building in Tai Kok Tsui, Kowloon, for around HK$750 million, or $95.6 million, which is a deemed by Ng as a "deep-value purchase" given its 62% discount to its previously cited valuation of HK$1.98 billion.
Wee Hur plans to convert the asset into a PBSA development with around 500 beds, with operations targeted to commence in 1H2028.
Located near Prince Edward MTR Station and within a 30-minute commute of four major universities, the asset is well-positioned to benefit from strong student accommodation demand.
"We view Wee Hur's entry into Hong Kong's PBSA market as a strategically positive development that expands the group's exposure to one of Asia's most compelling student accommodation markets, underpinned by strong policy-backed demand and a significant shortage of quality student housing," says Ng.
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"Hong Kong's ambition to strengthen its position as an international education hub has driven a steady increase in non-local student enrolment, while purpose-built accommodation supply has failed to keep pace," she adds.
Citing data from real estate consultancy Colliers, Ng notes that the market now has a shortage of around 94,000 beds, with demand projected to rise to 172,200 beds by 2028, resulting in a widening supply gap of around 120,000 beds.
"This structural imbalance should support sustained occupancy and rental growth for well-located PBSA assets. We expect these investments to strengthen Wee Hur's earnings growth profile as the assets progressively come onstream from 2H2026 onwards," says Ng.
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She especially likes how One Bedford Place was acquired at a deep discount to its previously cited valuation, providing a compelling margin of safety through its substantial embedded value and attractive entry price.
"The attractive pricing, alongside Wee Hur’s proven track record in Australia, serves as a strong testament to its turnaround execution and could catalyse further investment opportunities across Asia," adds Ng.
Wee Hur is poised to be one of the four counters to be removed from SGX's iEdge Singapore Next 50 index, together with Singapore Post, Digital Core REIT, China Sunsine Chemical Holdings.
