Potential buyer for Chevron House's retail, banking units offers $315m

SINGAPORE (THE BUSINESS TIMES) – A potential buyer has entered into an expression of interest (EOI) with Oxley Beryl to acquire the retail and banking units in 30 Raffles Place, formerly known as Chevron House, for $315 million, Oxley Holdings said in a bourse filing on Tuesday evening (May 19).

The property developer did not identify this buyer, and did not state whether it is linked to Golden Compass (BVI), the purchaser named in Oxley Holdings’ proposed $1.025 billion sale of the Raffles Place property announced last April.

30 Raffles Place is a 32-storey commercial development comprising 27 levels of office space and a five-storey retail podium with net lettable floor area of about 261,280 sq ft.

Oxley Holdings said in May 2019 that the divestment of the retail and banking units will be conducted via one or more rounds of an EOI process open to the public, and the consideration must be paid in cash.

A refundable deposit of $3.15 million has been received from the unidentified buyer for the units, the mainboard-listed company announced on Tuesday.

Under the EOI, the potential buyer may opt to ink a binding sale-and-purchase agreement with Oxley Beryl by June 15, 2020. Thereafter, the divestment of the units is expected to be completed by June 30, 2020, Oxley Holdings said on Tuesday.

In April 2019, Oxley Holdings inked a deal with US real estate fund AEW – through its investment vehicle Golden Compass – to buy the entire interest in Oxley Beryl and assume its existing bank loans for an aggregate value of up to $1.025 billion.

Upon the first completion of the proposed sale, Golden Compass paid $210 million and received a 82.35 per cent stake in Oxley Beryl, Oxley Holdings announced last June.

Golden Compass is to pay the balance of the consideration and discharge Oxley Beryl’s bank loans upon the final completion, after which the remaining 17.65 per cent of shares in Oxley Beryl will be transferred to Golden Compass.

The final completion will take place after the property’s alterations, additions and asset enhancement works are completed, and after the retail and banking units have been divested.

Oxley Holdings had paid $660 million for the development in December 2017.

Oxley shares gained 0.5 cent or 2.3 per cent to finish at 22.5 cents on Tuesday before the announcement.

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