Ho Bee Land has agreed to sell a 49% stake in Elementum for $134.0 million, factoring in the agreed property consideration of $555 million. The consideration will be paid fully in cash.
A sale and purchase agreement (SPA) was signed between Ho Bee Land H13 ’s wholly-owned subsidiary, HB Universal, and Fermium 257 on Aug 8. HB Universal is a special purpose vehicle (SPV) which holds the property while Fermium 257 is a Singapore-incorporated company that represents the interest of a sovereign wealth fund.
HB Universal is a private limited company with an issued and paid-up share capital of 144.12 million shares. Fermium will own its stake in Elementum through HB Universal’s shares.
Elementum is a 12-storey biomedical sciences development at 1 North Buona Vista Link. The building has a gross floor area (GFA) of 445,300 sq ft.
"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,” says Nicholas Chua, CEO of Ho Bee Land.
“Beyond the immediate investment, this partnership paves the way for broader collaboration, exploring new avenues for strategic growth and development,” states Ho Bee Land’s Aug 12 statement.
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Ho Bee Land won a land tender for the property, which was then known as Biopolis P6, for $223.6 million, in March 2020. In an interview with Business Times that same year, the company said that it intended to hold Elementum as a long-term investment.
In a November 2023 interview with The Edge Singapore, Chua said the group still intended to keep it for the long term for recurring income.
In its Aug 12 statement, Ho Bee Land says it still intends to continue to hold Elementum for long-term investment.
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As at the same day, Fermium has paid $2.7 million or 2.0% of the purchase consideration. The balance will be paid upon the completion of the sale, which is expected to take place on Aug 21.
Shares in Ho Bee Land closed at $1.79 on Aug 8.
