Ho Bee Land Sells 49 Stake Elementum 134 Mil
Ho Bee Land, a Singapore-based real estate company, has reached an agreement to sell a 49% stake in Elementum for $134.0 million. This amount takes into consideration the property’s agreed value of $555 million. The payment for this transaction will be made entirely in cash.
On August 8, a sale and purchase agreement (SPA) was signed between Ho Bee Land’s wholly-owned subsidiary, HB Universal, and Fermium 257. HB Universal is a special purpose vehicle (SPV) that holds the property, while Fermium 257 represents the interest of a sovereign wealth fund, as a Singapore-incorporated company.
HB Universal is a private limited company with 144.12 million issued and paid-up shares. Fermium will acquire its stake in Elementum through HB Universal’s shares.
Elementum is a 12-storey biomedical sciences development located at 1 North Buona Vista Link. The building has a gross floor area (GFA) of 445,300 square feet.
“We are pleased to enter into a strategic partnership with the SWF, as the life sciences sector has experienced unprecedented growth in recent years. They bring a wealth of experience, and we are well-positioned to explore new growth opportunities together, strengthening our commitment to innovation and excellence,” says Nicholas Chua, CEO of Ho Bee Land.
In addition to the immediate investment, this partnership also opens up possibilities for future collaboration, as stated in Ho Bee Land’s August 12 statement.
The recent launch of Norwood Grand by City Developments Limited (CDL) on Champions Way has attracted much attention in the real estate market. CDL has emerged as the highest bidder with a whopping offer of $294.889 million for the Champions Way site in Woodlands. This translates to a land rate of $904 per square foot per plot ratio (psf ppr). The bid for Norwood Grand, a project capable of housing 350 units, exceeded the second-highest offer by 8.3%. The latter was placed by TID, a joint venture between Hong Leong Group and Mitsui Fudosan, at $272.26 million and a land rate of $835 psf ppr. A total of six bids were received for this promising site. For interested buyers, more information on Norwood Grand can be found at http://www.norwoodgrandcondo.com.sg/.
In March 2020, Ho Bee Land won a land tender for the property, formerly known as Biopolis P6, for $223.6 million. In an interview with Business Times that same year, the company revealed its intention to hold Elementum as a long-term investment.
In a November 2023 interview with , Chua mentioned that the company still plans to keep Elementum for long-term investment, for the purpose of generating recurring income.
Ho Bee Land’s August 12 statement states that the company still plans to hold Elementum for long-term investment.
As of August 12, Fermium has paid $2.7 million or 2.0% of the purchase consideration. The remaining amount will be paid upon the completion of the transaction, which is expected to take place on August 21.
On the same day, shares in Ho Bee Land closed at $1.79.
This article was originally published on .