Bought by Golden Compass (BVI) which is fully owned by AEW Real Estate
Oxley Holdings has sold Chevron House for S$1.025 billion. The property developer announced this on Tuesday. Interestingly this development comes just 16 months after they had acquired this Raffles Place office building for S$660 million.
The developer had made an announcement on April 29 where it stated to have entered a SPA (sale-and-purchase agreement) with Golden Compass (BVI).
As per this agreement Golden Compass would acquire all interests in Oxley Beryl, Oxley’s wholly-owned subsidiary and also take over bank loans totalling to S$1.025 billion
The 32-storey commercial development, Chevron House has office space in 27 levels and a retail podium that occupies five levels.
The NLA (net lettable area) for this property stands at 261,280 square feet. Interestingly the developer as late as February in a corporate presentation had revealed plans of expanding the net lettable area to 374,165 sq ft or 43% increase from the current NLA if it could get permission from the authorities.
Oxley under this deal would earn S$2,739.43 psf on the increased net lettable area going by the sale price of S$1.025 billion.
The site has 70 years remaining on its 99-year lease tenure that started in December 1989. According to the company this sale is expected to help restructure their assets and also improve net tangible assets per share and improve earnings per share for the financial year that would end on June 30.
The company also said that it would carry on with the on-going additions, alterations and enhancement they has been going on since March 1 before they complete the final sale.
Oxley further added that the decision to sell Chevron House was arrived after both the parties saw value in the Oxley Beryl deal and their respective interests were served.