Oxley inks deals to sell retail, commercial units at former Chevron House for $315 million

Office workers walking outside Chevron House on Dec 14, 2017. PHOTO: ST FILE

SINGAPORE (THE BUSINESS TIMES) - Oxley Holdings and Oxley Beryl, which owns the former Chevron House, have entered into property sale agreements for the retail and commercial units in the 30 Raffles Place development for a total of some $315 million.

The retail strata lots at Levels B2, B1, 1 and 2 will be sold for $192.7 million, excluding applicable goods and services tax (GST) and subject to any tenancies and licences in respect of the lots, to Siriti R Pte Ltd.

The commercial strata lots at #03-03, #04-01 and #05-01 of the property will be sold for $122.3 million, excluding applicable GST and subject to any tenancies and licences, to Siriti C Pte Ltd.

Both sales are undertaken on a collective basis, and will be completed simultaneously on June 30 or another date the parties may agree on, said Oxley Holdings in a bourse filing on Monday evening (June 22).

In May, the developer announced that an unnamed party had entered into an expression of interest to acquire the retail and banking units for $315 million. The Business Times reported earlier this month that the potential buyer is understood to be an entity linked to Saudi Arabia-based Olayan Group.

In its filing on Monday, Oxley Holdings did not confirm whether Siriti R and Siriti C were linked to Olayan.

On completion of the strata lot sales, Oxley Holdings will enter into a deed of rental support as well as an asset management agreement with the two buyers.

Under the deed of rental support, Oxley Holdings will pay any shortfall from the agreed aggregate monthly target rent for the retail lots and commercial lots for two years.

As for the asset management agreement, Oxley Holdings will be appointed for a $1 fee for two years, to manage and market for the purpose of leasing out the retail and commercial lots, and it will bear certain costs and expenses incurred in connection with the provision of its services and the operation and management of the property.

Oxley Holdings said its aggregate liability under the deed of rental support and the asset management agreement is not expected to exceed 5 per cent of the total purchase price of about $315 million for the retail lots and commercial lots over the two-year period.

The purchasers have paid deposits totalling $3.15 million upon the signing of the sale agreements, to be held by Oxley Beryl's solicitors as stakeholders pending completion.

The balance of the total purchase price is about $311.85 million, subject to certain adjustments mainly relating to rental income and security deposits on the tenancies to be transferred to Siriti R and Siriti C where applicable, and will be paid to Oxley Beryl on completion.

Meanwhile, the final completion for Oxley Holdings' sale of Oxley Beryl - whereby the former's remaining 17.65 per cent stake in the latter will be transferred to Golden Compass (BVI) - is expected to take place at the same time as the completion of the sale of the retail and commercial units.

The remainder of the proceeds of the Oxley Beryl sale to Golden Compass to be received by Oxley Holdings will be about $200 million, less a retention sum for works after the retail and commercial units are sold.

Shares of Oxley Holdings fell 0.5 cent or 2 per cent to close at 24.5 cents on Monday before the announcement.

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