Ho Bee Land Sells 49 Stake Elementum 134 Mil
Singapore-based property developer Ho Bee Land has recently announced its decision to sell a 49% stake in Elementum for a hefty sum of $134.0 million. The agreed property consideration of $555 million has been factored in, with the full payment being made in cash.
Under a sale and purchase agreement (SPA) signed on Aug 8, Ho Bee Land’s wholly-owned subsidiary HB Universal will be selling the stake to Fermium 257, a Singapore-incorporated company representing the interests of a sovereign wealth fund. HB Universal acts as a special purpose vehicle (SPV) which owns the property, while Fermium 257 will hold its stake in Elementum through HB Universal’s shares.
HB Universal is a private limited company that currently has an issued and paid-up share capital of 144.12 million shares. The sale will result in Fermium 257 owning a significant stake in Elementum.
Elementum is a 12-storey biomedical sciences development located at 1 North Buona Vista Link. It boasts a gross floor area (GFA) of 445,300 sq ft.
Speaking on the partnership, Ho Bee Land CEO Nicholas Chua said, “The life sciences sector has witnessed unprecedented growth in recent years, and we are pleased to enter into a strategic partnership with the SWF. They bring a wealth of experience, and we are well-positioned to explore new growth opportunities together, strengthening our commitment to innovation and excellence.”
The partnership also opens up avenues for further collaboration between the two companies, paving the way for strategic growth and development.
Ho Bee Land had won the land tender for Elementum, then known as Biopolis P6, for $223.6 million in March 2020. In an interview with Business Times that year, the company expressed its intention of holding Elementum as a long-term investment.
In a November 2023 interview with , Chua reiterated this stance, stating that the company still intends to hold the property for the long term and generate recurring income.
In its Aug 12 statement, Ho Bee Land has also clarified that it intends to continue holding Elementum for long-term investment purposes.
As of the same day, Fermium has already paid $2.7 million or 2.0% of the purchase consideration. The remaining balance will be paid upon the completion of the sale, which is scheduled to take place on Aug 21.
Shares in Ho Bee Land closed at $1.79 on Aug 8. This news was first reported by .
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