Ho Bee Investment has sold the Platinum 28, a nine-storey freehold high-tech industrial building located at 28 Genting Lane.
The sale price is $48.5 million, which works out to around $591 psf for a net lettable area of 82,041 sq ft. Completed about two years ago, the project is now over 90 percent leased.
The sale price was reached on a willing seller willing buyer basis, considering the open market value of $33 million as of 31 December 2009 and current market conditions, said Ho Bee in a recent filing with the Singapore Exchange.
The buyer, Platinum28 Pte Ltd, controlled by a Singapore investor, has already paid a 5 percent deposit, with the balance to be paid upon completion in February next year. The sale proceeds will be used to reduce the group’s borrowings, as well as to provide additional working capital for the businesses of the group.
The sale will likely yield a gain of around $15 million, which will be reflected in the company’s financial result for Q1 2011.
This year, the company also sold four office floors at Samsung hub located on Church Street for $111.42 million, two shop units on Samsung Hub’s ground floor for slightly more than $14 million, Frontech Centre in the Bukit Merah area for $34.5 million, and the warehouse TG Building on Tagore Lane for $33 million.
Market watchers said the company is releasing resources for a $1 billion office development close to Buona Vista MRT Station. The project will consist of two office towers with Grade A specifications.
The development will have a total net lettable area of about one million sq ft. All are offices except for the approximately 20,000 sq ft of retail space on the ground floor.
Work is scheduled to start in Q1 2011 and will likely be completed by end-2013.