Wee Hur Holdings, through its wholly-owned subsidiary, has entered into a trust deed and investment management agreement in relation to the establishment of Wee Hur PBSA Fund III A (WHF3A) on Oct 21.
The establishment of WHF3A is for the group’s new purpose-built student accommodation (PBSA) development at Grenfell Street, Adelaide.
WHF3A will undertake a private placement exercise for the purpose of meeting the criteria of being a “managed investment trust” in Australia so as to be eligible for certain tax concessions and to raise funds for its PBSA development in Australia.
The total amount agreed to be paid by the holders of WHF3A in respect of the sponsor is no less than A$12.6 million; in respect of the Goh directors is no less than A$21.105 million, and the rest of the independent and unrelated holders an amount up to A$23.3 million.
In addition, Wee Hur has announced that it has proposed the disposal of its stake in the Grenfell Property in preparation for it to be developed into a PBSA.
Wee Hur currently holds an 80% interest in the Grenfell Property, and following the disposal will retain an indirect 20% stake with the remaining 36.98% to be held by other holders, and 33.50% to be held by the Goh Directors and their Associates.
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“In other words, the proposed disposal may be viewed as a partial disposal and restructuring by the company of approximately 60% of its interest in the Grenfell Property, reducing its direct interest from 80% to 20.11%, with the balance of its retained interest to be held indirectly through WHF3A,” the bourse filing reads.
The consideration for the disposal to be received by Wee Hur is $14.23 million, and the estimated gain on the disposal is about $4.7 million.
Net asset value of Wee Hur is expected to be 71.79 cents, and earnings per share is estimated to increase to 6.39 cents. Wee Hur intends to recycle and reallocate the net proceeds from the proposed disposal into new investment opportunities or for other general working capital purposes.
Shares in Wee Hur closed 0.5 cents higher or 0.714% up at 70.5 cents on Oct 22.
