Ho Bee Land disposes industrial buildings on Tannery Road and Tannery Lane for $115 mil

Ho Bee Land is currently disposing of its properties at 12 and 31 Tannery Road, known as HB Centre I and II respectively. The total consideration for the two properties is $115 million and the transaction became unconditional on March 14. The completion is expected to take place on or before June 27.Ho Bee Tengah EC Land will have a gain on disposal of $47.1 million before selling expenses due to the transaction, which will be reflected in the group’s consolidated earnings and net tangible assets in the period the disposal is completed. The proceeds from the disposal shall be used for the group’s general working capital purposes.Ho Bee Land is undertaking this disposal as part of its capital recycling strategy and to grow its operating capital. The group has a valuation of the two properties as at December 2022 of $67.9 million. The purchaser has paid $11.5 million, or 10% of the consideration and will pay the balance upon completion.
Ho Bee Land, as part of its capital recycling strategy and to grow its operating capital, has disposed of its properties at 12 Tannery Road and 31 Tannery Lane for a total consideration of $115 million. On March 7, the group entered into a sale and purchase agreement (SPA) with an unrelated third party, which became unconditional after the conditions of the disposal were satisfied on March 14.

The property at 12 Tannery Road, known as 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), and 31 Tannery Lane (HB Centre II) is an eight-storey light industrial building with a GFA of 3,701 sqm (39,837 sq ft).

The total consideration was paid by the purchaser, who initially paid $11.5 million, or 10%, and will pay the balance upon completion of the transaction, which is expected to take place on or before June 27.

Ho Bee Land will have a gain on disposal of $47.1 million before selling expenses due to the transaction, which will be reflected in the group’s consolidated earnings and net tangible assets. The group has already recorded a pre-tax valuation of $67.9 million for the properties as at December 2022.

The proceeds from the disposal will be used for the group’s general working capital purposes. Through the disposal, Ho Bee Land is ensuring it continues to have a healthy balance sheet, with the funds being put to good use in contributing to its operational capital.