Ho Bee Land sells London office block for £94.5 million

PROPERTY group Ho Bee Land has entered into a deal to sell Rose Court, an office block in Southwark, London to an unrelated Guernsey property unit trust for £94.5 million (S$167.5 million).

The buyer has paid a deposit of 10 per cent of the sale price and the balance will be payable upon completion on Feb 21, 2017. The transaction is a cash purchase, Ho Bee said in a news release issued after the close of market on Wednesday.

Rose Court was last revalued to £90 million in December 2016. The sale will yield a net gain of about £4.5 million - which will be reflected in the group's results for the current financial year ending Dec 31, 2017.

Ho Bee added that it intends to use the sale proceeds to reduce its borrowings and provide additional working capital for its businesses.

The group bought Rose Court as an office investment property for £67.2 million in June 2013 as part of the group's strategy to grow its recurring income base.