Ho Bee Land acquires US$34.1 million Western Australia residential site in JV

[SINGAPORE] Ho Bee Land has acquired a residential development site in Western Australia for A$48.5 million (US$34.1 million) through a joint venture, marking the developer’s expansion into the state.

The tie-up is with Satterley Dianella, a subsidiary of Australia’s land developer Satterley Property Group. Ho Bee Land holds an effective interest of about 48.6 per cent in the joint venture.

The 12.1 hectare (ha) infill site, located near Perth’s central business district, is planned for about 180 residential lots. It benefits from existing infrastructure, amenities and transport links, said the group in a bourse filing on Tuesday (Aug 4).

Separately, Ho Bee Land’s indirect wholly owned subsidiary has entered into a 50:50 joint venture with another subsidiary of Satterley Property Group to develop the Elimbah site in Queensland, which the company acquired for A$318.5 million in January.

The 181.4 ha master-planned development in Queensland’s City of Moreton Bay is expected to deliver about 1,400 residential lots and 64 mixed business and industrial lots.

“The joint venture structure allows the group to enhance capital efficiency and to effectively diversify and reduce its capital exposure to a single large-scale development project,” said Ho Bee Land.

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It added that both transactions are in line with its strategy to diversify geographically within Australia, including expanding into Western Australia.

The deals are expected to be financed by the group’s internal funds and bank borrowings. They are not expected to materially impact Ho Bee Land’s consolidated earnings and net tangible assets per share for the financial year ending Dec 31, 2026.

Ho Bee Land will release its first-half results on Aug 7. The counter ended Tuesday 1 per cent or S$0.02 higher at S$2.04, before the news.