Ho Bee Land sells nearly half of Elementum for S$134M

SINGAPORE: Ho Bee Land has agreed to sell a 49% stake in Elementum, a biomedical sciences development, for S$134 million. The sale is based on a total property valuation of S$555 million and will be paid entirely in cash.

According to The Edge Singapore, the sale and purchase agreement was signed on Aug 8 between Ho Bee Land’s wholly-owned subsidiary, HB Universal, and Fermium 257, a Singapore-incorporated company representing the interests of a sovereign wealth fund.

HB Universal is a private limited company with 144.12 million shares in issued and paid-up capital. Fermium will hold its stake in Elementum by acquiring shares in HB Universal.

Elementum, located at 1 North Buona Vista Link, is a 12-storey biomedical sciences development with a gross floor area of 445,300 square feet.

Nicholas Chua, CEO of Ho Bee Land, expressed optimism about the partnership with the sovereign wealth fund. He noted, “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.“

Ho Bee Land mentioned in its statement that this partnership “paves the way for broader collaboration, exploring new avenues for strategic growth and development.”

Ho Bee Land acquired the land for Elementum, then known as Biopolis P6, in March 2020 for S$223.6 million. The company had planned from the beginning to hold the property as a long-term investment, a strategy reiterated in an interview with Business Times that same year.

The Edge Singapore also reported in November 2023 that Mr Chua noted that the group planned to retain the property long-term to generate recurring income.

In its Aug 12 statement, Ho Bee Land confirmed its intention to keep Elementum as a long-term investment. Fermium had already paid S$2.7 million, 2% of the purchase price, with the remaining balance due at the sale’s completion on Aug 21. /TISG

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