SINGAPORE - Property developer Oxley Holdings has accepted a letter of intent (LOI) for the purchase of its Mercure and Novotel hotels along Stevens Road for $950 million. It was not announced who the buyer was.
The letter of intent is non-binding and is subject to the parties entering into a definitive sale and purchase agreement, Oxley said in an announcement late on Thursday (Jan 10) evening.
The consideration was agreed on a "willing buyer-willing seller" basis, taking into account the prevailing market conditions.
Under the terms of the LOI, upon receipt of the sum of $9.5 million as a non-refundable deposit, the buyer will be entitled to carry out due diligence during the period until April 15, 2019.
The buyer will then pay a sum of $38 million on Feb 28, and a further sum of $47.5 million on the signing date of the definitive sale and purchase agreement or April 15, whichever is earlier.
After a trading halt from 3pm on Thursday, shares in the developer will resume trading when market opens on Friday.