Ho Bee Land H13 , on March 15, announced that it has disposed of its properties at 12 Tannery Road and 31 Tannery Lane for a total consideration of $115 million.
The group had entered into a sale and purchase agreement (SPA) with an unrelated third party on March 7 to dispose of its properties. The purchaser has since paid $11.5 million or 10% of the consideration and the balance will be paid upon the completion of the disposal.
The transaction turned unconditional after the conditions of the disposal were satisfied on March 14. The completion is expected to take place on or before June 27.
The property at 12 Tannery Road is a 10-storey high-tech industrial building with a gross floor area (GFA) of 9,347 square metres (100,610.27 sq ft). The property at 31 Tannery Lane is an eight-storey light industrial building with a GFA of 3,701 sqm.
The properties have a valuation of $67.9 million as at December 2022. Following the transaction, Ho Bee Land will have a gain on disposal of $47.1 million before selling expenses.
The gain will be reflected in the group’s consolidated earnings and net tangible assets in the period that the disposal is completed.
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“The disposal is part of the group’s capital recycling strategy and is in its normal course of business. The proceeds from the disposal shall be used for the general working capital purposes of the group,” says Ho Bee Land via its March 15 statement.
Shares in Ho Bee Land closed 1 cent higher or 0.45% up at $2.22 on March 14.
