<article>Fortune REIT has sold a mall in Hong Kong, Hotel Properties has acquired two firms and Ho Bee Land has formed a Melbourne JV.</article>

Fortune REIT has sold a mall in Hong Kong, Hotel Properties has acquired two firms and Ho Bee Land has formed a Melbourne JV.
<h3>Fortune REIT sells Provident Square in HK</h3>
The manager of Fortune REIT is disposing of Provident Square in Hong Kong for HK$2 billion (S$344.5 million) via its wholly-owned special purpose vehicle Elveden Enterprises to Farsight Investment Limited.
Established in 1984, Provident Square is a shopping centre at a residential &amp; commercial development known as Provident Centre. The sale consideration represents a premium of approximately 88.5 per cent of the property’s appraised value of HK$1.061 billion, with Fortune REIT expected to book a gain of approximately HK$921 million on completion of the sale.
The asset has a gross rentable area of 180,238 sq ft, with its occupancy rate for residences at 94 per cent and commercial lease at 84.6 per cent. For H1 2017, it contributed to 2.5 per cent of the REIT’s net property income.
The sale is aligned with its strategy of improving operational efficiency and performance of the REIT’s portfolio, as well as to recycle capital for value creation to its unitholders. Net proceeds from the sale will be used for general corporate and working capital purposes, including repaying an existing bank loan amounting to HK$1.1 billion.
<h3>Hotel Properties to acquire 50% of Palmco Hotels &amp; 10% of HRHM</h3>
Hotel Properties, through its wholly-owned subsidiary HPL Properties (SEA), is to acquire an additional 50 per cent interest in Palmco Hotels (PHSB) and an additional 10 per cent interest in HRH Merchandise (HRHM) from ISY Holdings for a total consideration of RM105 million (S$34.7 million).
The acquisition will be financed through internal resources and boost its earnings per share from 18.13 cents to 20.18 cents.
Prior to this, the group owned 50 per cent of PHSB and 90 per cent of HRHM. This deal will see it own the entire issued share capital of both PHSB and HRHM. The total paid-up capital of PHSB is RM22.5 million and the total paid up capital of HRHM is RM1 million.
PHSB owns the 250-room Hard Rock Hotel Penang, along with its trademark Hard Rock Café and facilities located at Batu Ferringhi, Penang in Malaysia. HRHM’s principal activity is trading in souvenirs, mementoes, gifts, clothing, apparels, and accessories.
<h3>Ho Bee Land forms Melbourne JV</h3>
Ho Bee Land’s wholly-owned subsidiary, HB Oracle, has entered into a joint venture (JV) agreement with Villa World Wollert for a residential development in Wollert, Melbourne.
Villa World will hold 51 per cent of the JV &#8211; Wollert JV &#8211; while HB Oracle will hold the remaining 49 per cent. The JV partners have acquired two land parcels situated at 40 &amp; 60A Bodycoats Road in Wollert for a consideration of A$30 million that will be developed into 285 residential land lots.
Land and development costs of the project will be funded by the JV partners in proportion to their equity holdings. HB Oracle will finance its share of the costs via internal funds and bank borrowings. The latest project aligns with Ho Bee&#8217;s strategy of geographical diversification and its capital recycling plan.
Also Read:
<a href="https://www.dealstreetasia.com/stories/sg-realty-capitaland-abr-and-yanlord-in-acquisition-drive-89013/">SG Realty: CapitaLand, ABR and Yanlord strike property deals</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/sg-realty-singhaiyi-us-project-keppel-land-vietnam-88966/">SG Realty: SingHaiyi sells US realty project for $95.3m; Keppel Land acquires two Vietnam sites</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/sg-realty-cityneon-scorpio-east-oxley-holdings-88656/">SG Realty: Cityneon Holdings buys Scorpio East; Oxley Holdings on acquisition spree</a>

The manager of Fortune REIT is disposing of Provident Square in Hong Kong for HK$2 billion (S$344.5 million) to Farsight Investment Limited.

SG Realty: Fortune REIT sells HK mall; Hotel Properties' acquisition; Ho Bee Land's Melbourne JV

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

SG Realty: Fortune REIT sells HK mall; Hotel Properties' acquisition; Ho Bee Land's Melbourne JV

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief