Buyer keen to scoop up S$950 million worth of Oxley Holdings’ properties

The property developer has accepted a letter of intent for the purchase of its Mercure and Novotel hotels along Stevens Road, Singapore.

Mercure and Novotel hotels on Stevens Road, Singapore Source: Accor

Property developer Oxley Holdings said in a regulatory filing on the Singapore Exchange on Thursday night that it has received and accepted a letter of intent for the purchase of its Mercure and Novotel hotels along Stevens Road, Singapore for S$950.00 million.

The letter is non-binding and subject to the parties entering into the sale and purchase agreement. The consideration of the deal was agreed on a “willing-buyer-willing-seller” basis, which takes into account the existing market conditions, Oxley said.

The identity of the buyer was not disclosed in the filing. Under the terms of the deal, once 1.00% of the considered sale price or S$9.50 million has been received by Oxley Gem, the wholly-owned subsidiary of Oxley, the purchaser can conduct due diligence on the property during the period until April 15th, 2019.

The buyer will have to pay a sum of S$38.00 million, or 4.00% of the total deal value on February 28, 2019, and a subsequent sum of S$47.50 million on the agreed signing date, or April 15, 2019, whichever is earlier.

Oxley noted that none of the directors or controlling shareholders of the company has any interest, directly or indirectly, in the proposed transaction.

Investors reacted positively on the deal on Friday and Oxley’s counter spiked 6.78% or S$0.02 to close the day’s trading at S$0.32.

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