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

Tengah Plantation EC
Ho Bee Land has announced that it has disposed of its two properties at 12 Tannery Road and 31 Tannery Lane for a total consideration of $115 million. The properties, known as HB Centre I and HB Centre II respectively, are located off MacPherson Road in District 13.

The group entered into a sale and purchase agreement (SPA) with an unrelated third party on March 7, and the purchase completed conditionally on March 14 after the required conditions were fulfilled. The purchaser has already paid 10% of the consideration ($11.5 million) and the balance will be paid upon completion, which is expected to take place on or before June 27.

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). HB Centre II is an eight-storey light industrial building with a GFA of 3,701 sqm (39,837 sq ft).

As of December 2022, the properties had a valuation of $67.9 million. Following the transaction Ho Bee Land will have a gain on disposal of $47.1 million before selling expenses. This gain will be reflected in the group’s consolidated earnings and net tangible assets once the disposal is completed.

The disposal is part of the group’s capital recycling strategy and the funds from the disposal will be used for the general working capital purposes of the group.