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Ho Bee Land's subsidiary enters into JV for residential land development in Australia
HO Bee Land's (HBL) wholly-owned subsidiary, HB Oracle has entered into a joint venture (JV) agreement with Villa World Wollert for a residential land subdivision development in Wollert, Melbourne, with a joint property acquisition sum of A$30 million (S$31 million).
Wollert JV has been established as a special purpose company to undertake the project, with 51 per cent of shares held by Villa World and 49 per cent of shares held by HB Oracle.
The two JV partners undertake joint development of two land parcels situated at 40 & 60A Bodycoats Road, Wollert, Victoria, Melbourne.
The 16ha site is located adjacent to the future Wollert Town Centre and is less than 30 km from the central business district and under 20 km from Melbourne airport. The site will be developed into 285 land lots. The land and development costs of the project will be funded by the JV partners in proportion to their equity holdings.
Ho Bee Land said that the project is in line with the group's strategy of geographical diversification and its capital recycling plan.
The project will be financed by HB Oracle using its internal funds and bank borrowings. It is not expected to have any material impact on the consolidated earnings per share and net tangible assets per share of the HBL group for the financial year ending Dec 31, 2017.