Ho Bee’s Group initial proposal of the sale of its $30 million worth Frontech Centre has not pursued.
Frontech Centre is a high-tech industrial building with eight floors and a gross floor area of 71, 992 square feet and a lettable area of about 69,382 square feet.
The company announced that the purchaser advised in November 12 that they were not pushing through with the deal.
There was no information given about the purchaser, although it was mentioned that it is a company registered as AG Frontech Pte. Ltd. Moreover, it is known to all that the purchaser is a US-based property fund.
However, there was no reason cited about the deal’s cancellation. Ho Bee shared that the company wrote to the purchaser on the same day they were advised of the cancellation, and instead recommend on completing the sale in November 14, as earlier agreed upon. But the purchaser was not able to complete the transaction.
By seeking legal advice, Ho Bee has given the purchaser a notice of 21 days as of yesterday to fulfil and finish the acquisition. According to Ho Bee, the sale proceeds from this deal were supposed to be used to cut its borrowing and to increase working capital.
The open market value of $18.5 million as of 31 December 2007, as appraised by Colliers International, was taken into consideration in the pricing of the $30 million worth Frontech Centre. However, there was no revaluation done for the intent of this sale.