Wee Hur in sweet spot’ to capitalise on student housing boom

Its purpose-built student accommodation in Australia set to be its biggest cash cow

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Being in the right business in the right place at the right time is often the secret sauce for success.

One company which seems to have all three things right is Wee Hur Holdings. Listed on the Singapore Exchange mainboard in 2009, the company started out in the construction business.

It has two developments, Bartley Vue condominium and Mega@Woodlands industrial building, which have take-up rates of 90 per cent and 96 per cent, respectively, and will be sold out before the end of this year.

Wee Hur's construction business has an order book of $240 million as at end-December 2023, ensuring a steady workload until 2026.

Wee Hur also has a notable footprint in the workers' E dormitory business. Its Tuas View Dormitory has 15,744 beds and enjoys an occupancy of 98 per cent, while its Pioneer Lodge dorm with 10,500 beds will be partially operational early next year.

But there is another business which is turning out to be Wee Hur's biggest cash cow.

Led by chief executive officer Goh Wee Ping and executive chairman Goh Yeow Lian, the company is a big player in the purpose-built student accommodation (PBSA) market in Australia.

Wee Hur started a trust fund in 2017 with A$350 million (S$313 million) with a target of developing a portfolio of 5,000 beds in major cities in Australia.

The aim was to derive income from leasing rooms in these facilities to international students who are pursuing full-time higher education in that country.

Wee Hur is the sponsor, manager and 60 per cent owner of the trust. The remaining 40 per cent is owned by minority shareholders, comprising some 36 separate entities.

The trust was set up with an initial term of five years. Today, it has developed seven properties with a bed capacity of 5,254. By 2025, this will increase to 6,071 beds.