Wee Hur (SGX:E3B) agreed to sell seven purpose-built student accommodation assets to Australia's Graystar, according to a filing with the Singapore Exchange on Monday.

The portfolio, which includes 5,500 beds across Australia, will be sold for a purchase consideration of around A$1.6 billion.

The consideration will be satisfied through cash and endorsement of a promissory note in favor of the vendor, Perpetual Corporate Trust.

Following the sale, Wee Hur will retain a 13% stake in the assets through its subsidiary, Wee Hur Australia.

Proceeds will be used for new investment opportunities and general working capital purposes.

Shares of the company surged nearly 13% in recent trading.