Ho Bee Land divests Munich office asset, books gain of €44.8m on notes investment

HO Bee Land H13 : H13 0% on Thursday (Mar 17) announced that it had recently divested a commercial property known as Elementum located in Munich, Germany, booking an estimated gain on its notes investment of some 44.8 million euros (S$67.1 million) from the sale, according to preliminary information from Credit Suisse AG (Singapore).

Back in March 2018, the company entered into an agreement with Credit Suisse AG (Singapore) where Ho Bee would invest up to 92 million euros through the acquisition of notes issued by a securitisation company called Clouse S.A., Compartment 29.

The proceeds of these notes were then invested into the Munich property. As at end-2021, Ho Bee had accounted for a fair-value gain of 24.6 million euros on its investment of 78.6 million euros.

The company said the proceeds from the divestment will be used for its working capital purposes.

As at end-December 2021, the net asset value of the property that was divested accounted for 4 per cent of the group's net asset value, and the net profit attributable to the asset constituted 8.6 per cent of the group's total net profits.

Assuming the divestment was effective end-December last year, Ho Bee's net tangible assets per share would have come in at S$5.96 versus S$5.92.

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If the divestment was effective on Jan 1, 2021, or the start of Ho Bee's most recently completed fiscal year, the group's earnings per share would have been pushed up to S$0.5317 from S$0.4977.

Shares of Ho Bee ended Thursday at S$2.81, up 0.4 per cent or S$0.01.