Tuesday, November 18, 2008

Ho Bee's Sale Of Frontech Centre Hits Snag

Source : The Business Times, November 18, 2008

Purchaser backs off from deal, misses Nov 14 deadline

HO Bee Group's proposed $30 million sale of its Frontech Centre has fallen through.

The company said yesterday that it had received notice on Nov 12 that the purchaser was not going ahead with the deal.

No details of the purchaser were revealed, except that it is a company registered as AG Frontech Pte Ltd. However, it is understood that the purchaser is a US-based property fund.

No reason for the collapse of the deal was given. Ho Bee said that it wrote to the purchaser on Nov 12, saying it was willing and ready to complete the sale on Nov 14 as agreed. However, the purchaser failed to complete the transaction.

Following legal advice, Ho Bee has given the purchaser 21 days' notice as of yesterday to complete the acquisition.

Frontech Centre is an eight-storey high-tech industrial building with a gross floor area of 71,992 square feet and a lettable area of about 69,382 sq ft.

Ho Bee said earlier that it planned to use the sale proceeds to cut its borrowing and increase working capital.

The $30 million price for the Frontech Centre was arrived at by taking into account the open market value of $18.5 million as at Dec 31, 2007, as appraised by Colliers International.

No revaluation was conducted for the purpose of the sale, save the last valuation.

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