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

Ho Bee Land has disposed of its properties at 12 Tannery Road and 31 Tannery Lane for a total consideration of $115 million. The deal turned unconditional on March 14 and is expected to be completed on or before June 27.
Ho Bee Land entered into a sale and purchase agreement (SPA) with an unrelated third party on March 7 and the third party paid $11.5 million or 10% of the consideration.

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) while the property at 31 Tannery Lane (HB Centre II) is an eight-storey light industrial building with a GFA Senja Close EC of 3,701 sqm (39,837 sq ft).

Both properties have a combined valuation of $67.9 million as of December 2022. After the transaction, Ho Bee Land will have a gain on disposal of $47.1 million before selling expenses.

According to Ho Bee Land in a March 15 statement, the proceeds from the disposal will be used for the general working capital purposes of the group. The deal is part of the group’s capital recycling strategy and is in its normal course of business.

The completion of the disposal is expected to take place on or before June 27 and the gain is expected to be reflected in the group’s consolidated earnings and net tangible assets in the period which the disposal is completed.

Ho Bee Land has entered into a sale and purchase agreement to dispose of its properties at 12 Tannery Road and 31 Tannery Lane for a total consideration of $115 million. Both properties have a combined valuation of $67.9 million as of December 2022.

The deal turned unconditional after the conditions of the disposal were satisfied on March 14 and the third party has paid $11.5 million or 10% of the consideration. The completion of the disposal is expected to take place on or before June 27.

On March 15, Ho Bee Land announced that following the transaction, it will have a gain on disposal of $47.1 million before selling expenses. The proceeds from the disposal will be used for the general working capital purposes of the group, a part of its capital recycling strategy. The gain is expected to be reflected in the consolidated earnings and net tangible assets in the period which the disposal is completed.