Ho Bee Land Sells 49 Stake Elementum 134 Mil
Ho Bee Land, a leading real estate company, has recently announced the sale of a 49% stake in Elementum for a whopping $134.0 million. The sale includes a property consideration of $555 million, which will be paid in full cash.
The agreement was signed between Ho Bee Land’s wholly-owned subsidiary, HB Universal, and Fermium 257 on August 8. HB Universal, a special purpose vehicle, holds the property while Fermium 257, a Singapore-incorporated company representing a sovereign wealth fund, holds the interest.
HB Universal holds a total of 144.12 million shares as its issued and paid-up share capital. Fermium 257 will acquire its stake in Elementum through these shares.
Elementum, a 12-storey biomedical sciences development located at 1 North Buona Vista Link, has a gross floor area of 445,300 sq ft. The property was acquired by Ho Bee Land through a land tender for $223.6 million in March 2020.
In an interview with Business Times the same year, Ho Bee Land expressed its intention to hold Elementum as a long-term investment. CEO Nicholas Chua stated, “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.”
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In its statement on August 12, Ho Bee Land mentioned that this partnership opens doors for further collaborations and strategic growth.
In a November 2023 interview, Chua also mentioned the company’s plans to hold Elementum for the long term to generate recurring income. The recent sale of a stake in Elementum does not change Ho Bee Land’s intention to retain it as a long-term investment.
As of August 12, Fermium has paid $2.7 million, which accounts for 2.0% of the purchase consideration. The remaining amount will be paid upon the completion of the sale, which is expected to take place on August 21.
On August 8, shares in Ho Bee Land closed at $1.79. This transaction marks a significant milestone for the company and further strengthens its position in the real estate market.