Mainboard-listed Ho Bee Land says its wholly-owned subsidiary, Grandiose Investments Pte Ltd (GIPL) has entered into an agreement to sell Rose Court in Southwark, London to Guernsey property unit trust for £94.5 million ($167.2 million).

GIPL acquired Rose Court as an office investment property for £67.2 million in June 2013 as part of the group’s strategy to grow its recurring income base. The building comprises 157,144 sq ft of office and ancillary accommodation arranged over lower ground, ground and nine upper floors. The property is leased to the Secretary of State for Communities and Local Government until September 2018 at an annual rental of £4.3 million.

In a statement to the Singapore Exchange, Ho Bee Land said, Guernsey paid a deposit of 10% of the sale price and the balance will be payable upon completion on 21 February 2017. The transaction is a cash purchase.

The property was last revalued to £90 million in December 2016. The sale will yield a net gain of approximately £4.5 million ($7.9 million). The Group says it intends to use the sale proceed to reduce its borrowing and provide additional working capital for its businesses.