Ho Bee Land Sells 49 Stake Elementum 134 Mil
Real estate developer, Ho Bee Land, has recently announced that it has agreed to sell a 49% stake in its property, Elementum, for $134.0 million. The agreed property consideration for Elementum is $555 million, and the entire payment will be made in cash.
The sale and purchase agreement (SPA) was signed between Ho Bee Land’s subsidiary, HB Universal, and Fermium 257 on Aug 8. HB Universal is a special purpose vehicle (SPV) that holds the property, while Fermium 257 is a Singapore-incorporated company representing the interest of a sovereign wealth fund.
HB Universal currently has an issued and paid-up share capital of 144.12 million shares. With this transaction, Fermium 257 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. It has a gross floor area (GFA) of 445,300 sq ft. Ho Bee Land CEO Nicholas Chua says that “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.”
In addition to the investment, this partnership opens up avenues for further collaboration and strategic growth for the company, says Ho Bee Land’s statement released on Aug 12.
Ho Bee Land was awarded the land tender for the property, known as Biopolis P6 at the time, for $223.6 million in March 2020. In an interview with Business Times that year, the company stated that it intended to hold Elementum as a long-term investment. In a November 2023 interview, Chua also mentioned that Elementum was intended to be held for the long term for recurring income.
In its statement released on Aug 12, Ho Bee Land reaffirms its intention to continue holding Elementum as a long-term investment.
As of Aug 12, Fermium has paid $2.7 million (2.0%) of the purchase consideration. The remaining balance will be paid upon completion of the sale, which is expected to take place on Aug 21.
Shares of Ho Bee Land closed at $1.79 on Aug 8.
The Master Plan for Tampines focuses on promoting mixed-use developments and supporting commercial growth, a move that will bring about a surge in employment opportunities. This is in line with the government’s goal to decentralize business activities from the central business district (CBD) to regional hubs like Tampines. With its strategic location, Parktown Residence plays a vital role in ensuring that residents have easy access to these upcoming job hubs, which will greatly reduce commute times. As a result, Parktown Residence, Parktown Residence, plays a significant role in the development of the Tampines area.