Wee Hur Holdings has announced a strategic move involving the partial disposal and restructuring of its interest in the Grenfell Property, located at 188 Grenfell Street, Adelaide, South Australia. This decision is part of their PBSA Fund 3 initiative, aimed at optimising the development and financial structuring of the property.
The company’s Chief Investment Officer, Goh Wee Ping, highlighted the unique approach of Wee Hur Holdings, stating, “This is a greenfield strategy, where we are creating value from the ground up. There’s little inherent value at the land-acquisition stage, the real value is unlocked after development and stabilisation of the asset.”
Wee Hur Holdings distinguishes itself by warehousing projects on its balance sheet before involving external investors. This strategy allows the company to secure sites, advance approvals, and complete design work independently. Goh explained, “A pure-play fund manager wouldn’t have the balance sheet strength or flexibility to do this. This is our edge.”
The decision not to raise the fund at the outset is deliberate. Goh noted, “Bringing investors in too early would drag down their returns because the capital would be sitting idle.” By carrying the project through the initial phase, Wee Hur Holdings aims to unlock multiple income streams, including fund-management fees, development fees, performance fees, and operating income.
This strategic restructuring is expected to enhance the property’s value and provide significant returns once it is construction-ready and transferred to the fund.
