Ho Bee Land disposes industrial buildings on Tannery Road and Tannery Lane for $115 mil
Ho Bee Land, on March 15, announced that it has disposed of its properties located off MacPherson Road in District 13, 12 Tannery Road and 31 Tannery Lane, for a total consideration of $115 million. Following the transaction, the group will gain a $47.1 million before selling expenses.
Ho Bee Land had entered into a sale and purchase agreement with an unrelated third party on March 7. The purchaser has since paid $11.5 million or 10% of the consideration and the balance will be paid upon completion of the disposal. The transaction became unconditional after the conditions of the disposal were satisfied on March 14, and completion is expected to take place on or before June 27.
The property at 12 Tannery Road (HB Centre I) is a 10-storey high-tech industrial building with a gross floor area (GFA) of 9,347 sqm (100,610 sq ft). Map and overview of HB Centre I (Source: EdgeProp LandLens)
31 Tannery Lane, known as HB Centre II, is an eight-storey light industrial building with a GFA of 3,701 sqm (39,837 sq ft). Map and overview of HB Centre II (Source: EdgeProp LandLens) Both buildings have a valuation of $67.9 million as at December 2022.
The proceeds from the disposal will be used for the general working capital purposes of the group and is part of the group’s capital recycling strategy. Ho Bee Land stated, “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.”
The group is The Myst set to gain a gain on disposal of $47.1 million before selling expenses upon completion of the disposal. The gain will be reflected in the group’s consolidated earnings and net tangible assets in the period that the disposal is completed.