REAL estate company Ho Bee Land : H13 0% is selling two of its industrial properties to an unrelated third party for S$115 million.

The buildings sit on contiguous freehold land and have been held for long-term investment.

Their disposal is part of Ho Bee Land’s capital-recycling strategy and is in the ordinary course of business, said the group on Wednesday (Mar 15).

Proceeds from the sale will be used for general working purposes.

Located at 12 Tannery Road, HB Centre 1 is a 10-storey high industrial building with a gross floor area (GFA) of 9,347 square metres (sq m). The other property at 31 Tannery Lane, HB Centre 2, is an eight-storey light industrial building with a GFA spanning 3,701 sq m.

These assets carried a combined value of S$67.9 million, as at December 2022.

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Their sale is expected to result in a gain on disposal of S$47.1 million before deducting selling expenses in the period that the deal Is completed.

Ho Bee Land indicated that conditions for the transaction were satisfied by the purchaser on Mar 14, such that the deal is now unconditional.

Ten per cent of the consideration, or S$11.5 million, was paid to Ho Bee Land as at the date of the announcement, with the balance payable upon the deal’s completion.

Shares of Ho Bee Land closed S$0.01 or 0.5 per cent higher at S$2.22 on Tuesday.