Singapore’s Ho Bee Land Sells Munich Office Bldg

GERMANY – Ho Bee Land revealed that it recently offloaded an office building in Munich, Germany and would receive an estimated gain of about €44.8 million (S$67.1 million), according to Singapore Exchange (SGX) filings published on Thursday afternoon (17 March, SGT).

Previously, on 26 March 2018, the Singapore-listed real estate company announced that it had signed a deal with Credit Suisse AG Singapore, under which Ho Bee Land invested up to €92 million via the acquisition of notes issued by Clouse S.A., Compartment 29.

The proceeds of the notes were invested in a commercial property known as Elementum located at Bayerstrasse 49, 51, 53, Paul-Heyse-Strasse 7, Schwanthalerstrasse 46, 48, 50 Munich, Germany. Credit Suisse has informed noteholders that the office building was recently sold.

Based on initial info provided by the bank on 15 March 2022, Ho Bee Land’s estimated gain on the notes investment is roughly €44.8 million. As of 31 December 2021, the property company had accounted for fair value gain amounting to €24.6 million on its investment of €78.6 million.

Ho Bee Land disclosed that the proceeds from the sale of the Munich commercial property will be utilized for working capital purposes.

As at the end of December 2021, the office building’s net asset value made up 4 percent of the group’s net asset value, and the net profit attributable to the commercial property accounted for 8.6 percent of Ho Bee Land’s overall net profits.

Assuming the sale took effect in end-December 2021, the real estate company’s net tangible assets per share would have reached S$5.96 compared to S$5.92, the actual recorded value. At the same time, Ho Bee Land’s earnings per share for fiscal year 2021 would have increased from S$0.4977 to S$0.5317.