Ho Bee earnings soar on $489.6m revaluation gain
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Kalpana Rashiwala
A REVALUATION gain of $489.6 million for The Metropolis office project in Buona Vista provided a big boost to Ho Bee Land's fourth-quarter and full-year net earnings.
The property group announced net profit of $506.1 million for the fourth quarter ended Dec 31, 2013, up from $66.9 million for Q4 2012. For FY 2013, the group's net profit rose to $591.8 million from $187.1 million in FY 2012. Also contributing to the stronger bottom line was the $47.2 million gain from disposal of shares in Chongbang Holdings (International) in early 2013.
As at end-December 2013, The Metropolis, comprising two office towers with Grade A specifications plus a small retail component, was valued at $1.242 billion by Colliers International. This translates to around $1,150 per square foot (psf) based on the project's 1.08 million sq ft total net lettable area. Market watchers reckon this may be on the conservative side. Ho Bee developed the project on a 99-year-leasehold site it acquired at a state tender in 2010.
