New Agents Appointed for Sale of Stevens Road Hotels
Oxley Holdings the property developers which were looking into the sales of hotels Novotel and Mercure have recently released a statement announcing that they have appointed new agents for the mentioned properties after the precious sale deal was called off.
Three agents namely Jones Lang LaSalle Property Consultants, CBRE and JLL Hotels & Hospitality Group are the new agents.
They have been given the task of marketing, sourcing, negotiating, evaluating and finalising purchasers for these hotels which are located on Stevens Road.
Oxley Holdings mentioned that currently the appointments have been made for six months which though can be extended by a mutually agreed upon written agreement stating the terms and conditions.
There is an increasing interest in hotels in Singapore with foreseeable growth rate and benefits.
Ching Chiat Kwong, the CEO and executive officer of Oxley Holdings said that they have already received several enquiries from interested parties for the properties mainly because of the upward growth rate of hotels in the country.
Gracious Land had previously committed to buying these properties but the deal was called off as they failed to make a deposit of S$38 million which was about 4% of the total S$950 million.
The buyer has reportedly asked for a refund of S$9.5 million that had been paid to Oxley. However Oxley have reiterated that they do not need to repay the said amount.
Adam Bury the investment sales senior vice-president, JLL said that they are envisioning an increased demand for hotels as Singapore is experiencing an increase in trading in the hotel market.
He said that this upward trend was mainly due to the limited supply of new hotels. Moreover, since the site is of the freehold nature which is very rare in the market, there is an increased interest.
He said that it was in 2013 that a similar deal was last completed. Since there is an increase in developmental charges for hotels, land acquisitions for new premises have been prohibited.
According to Bury this should help in the sale of the Stevens Road properties.
Galven Tan the executive director for capital markets, CBRE said that there has been a significant increase in interests for hotels in the last year and a half with many international investors showing interest.