Ho Bee Land acquires Queensland development site for A$318.5 million

[SINGAPORE] Ho Bee Land acquired a development site in Queensland, Australia, for A$318.5 million (S$279.8 million) as the group moved to expand its long-term land bank in the country, it announced on Monday (Jan 26). 

The acquisition was made through its wholly owned subsidiary, Elimbah Land, which entered into a contract of sale for the 181.36-hectare site located in Elimbah, within the City of Moreton Bay.

The statement did not specify the seller involved in the transaction. 

Upon completion, the site is expected to accommodate around 1,400 residential lots and about 64 mixed business and industrial lots.

Ho Bee Land highlighted the site’s strategic location, noting its direct access to the Bruce Highway and its proximity to established employment, residential and logistics precincts.

The developer described the move as being in the ordinary course of business, aligning with its strategic objective to secure large-scale, long-term land banks in key Australian markets.

Financial impact

The total purchase consideration of A$318.5 million was arrived at on a willing-buyer, willing-seller basis, factoring in the site’s location and development potential, Ho Bee Land said.

A deposit of A$10 million was paid upon the execution of the contract. The remaining balance will be payable in stages, contingent on agreed settlement milestones.

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The group stated that the acquisition will be funded through a combination of internal funds and bank borrowings.

Ho Bee Land does not expect the transaction to have a material impact on its consolidated earnings and net tangible assets per share for the financial year ending December 31, 2026.

Shares of Ho Bee Land ended S$0.05 or 2.2 per cent higher at S$2.35 on Friday, before the announcement.