Oxley selling units at former Chevron House for $315m

Sales of the retail and commercial units at the former Chevron House in Raffles Place will close on June 30 or another agreed date, said Oxley Holdings on Monday night. LIANHE ZAOBAO FILE PHOTO

Updated from : 24 June 2020

Oxley Holdings and Oxley Beryl, which owns the former Chevron House, are selling the retail and commercial units in the development for around $315 million.

The retail strata lots at levels B2, B1, one and two will be sold for $192.7 million, excluding applicable goods and services tax and subject to any tenancies and licences, to Siriti R. Commercial lots on levels three, four and five will be sold for $122.3 million, under similar conditions, to Siriti C.

Both sales will close on June 30 or another agreed date, said Oxley Holdings on Monday night.

Last month, the firm said an unnamed party had entered into an expression of interest to acquire the retail and banking units in the block at 30 Raffles Place for $315 million.

It was reported earlier this month that the potential buyer is understood to be an entity linked to Saudi Arabia-based Olayan Group.

Oxley Holdings did not confirm whether Siriti R and Siriti C were linked to Olayan.

Once the sales have closed, Oxley Holdings will enter into rental and management agreements with the two buyers.

This will involve it paying any shortfall from the agreed aggregate monthly target rent for the retail and commercial lots for two years.

The developer will also manage and market these lots and bear certain costs incurred for two years for a $1 fee.

Oxley Holdings said its liability under these agreements is not expected to exceed 5 per cent of the total purchase price of about $315 million over the two-year period.

The buyers have paid deposits of $3.15 million with the balance of 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 – to be paid to Oxley Beryl on completion.

Meanwhile, the final completion of Oxley Holdings’ sale of Oxley Beryl is expected to take place at the same time as the sale of the retail and commercial units is closed.

This involves Oxley Holdings transferring its remaining 17.65 per cent stake in Oxley Beryl to Golden Compass.

Oxley Holdings will get proceeds of about $200 million from the sale to Golden Compass, less a sum for works after the retail and commercial units are sold.