London isn't the only city Ho Bee Land H13 is facing challenges in. On March 15, questions from the Singapore Exchange S68 shone a light on a challenge in Tianjin.
The SGX asked Ho Bee about a net loss of $10.2 million in the share of results of its associates in FY2023 compared with a profit of $32.7 million in FY2022
Ho Bee Land says the associate holds a project in Tianjin in which Ho Bee owns 49%. This Tianjin Renmei Project is developing 12 blocks of 752 residential units with a total gross floor area of approximately 117,100 sqm.
The project is still under development and will be completed in mid-2024.
"In view of the market conditions in the China residential market, Tianjin Renmei took the decision to reduce the selling price for the Tianjin project to below cost," Ho Bee replied.
The residential units have been fully sold in 1Q2024. This has resulted in the provisions made with respect to foreseeable losses on the Tianjin project and its impact on the performance of Tianjin Renmei, Ho Bee says in reply.
As at end-Dec FY2023, Ho Bee announced that the valuation of The Scalpel in London was GBP 554 million. Ho Bee acquired The Scalpel for GBP 718 million, or $1.3 billion, in February 2022.
