Singapore developer Oxley Holdings gets $758m offer for Chevron House
Singaporean property developer Oxley Holdings said it has received a S$1.025 billion ($758 million) unsolicited bid for the 32-storey Chevron House building at Raffles Place from a US-based real estate fund manager.
The disclosure did not name the buyer of the property but a Mingtiandi report said Chevron House will be acquired by AEW.
In a disclosure to the Singapore Exchange, the developer said its wholly-owned subsidiary Oxley Beryl has accepted an expression of interest (EOI) from the buyer on a “willing buyer-willing seller” basis.
Oxley bought the 1993-vintage tower Chevron House for S$660 million ($488 million) in 2018 from Deka Singapore. Chevron House, situated in Singapore’s primary finance hub, is a 32-storey commercial development with 27 levels of office space and a five-storey retail podium. It has a net lettable floor area of 24,273 square meters.
The expression of interest granted AEW an exclusive dealing period of 45 days but is not legally binding and is subject to, among others, the conduct of due diligence and the parties entering into a definitive sale and purchase agreement, Oxley said.
“The EOI was accepted after taking into consideration the prevailing conditions in the property market; and that this unsolicited offer generally meets the group’s long-term investment objectives originally contemplated during the acquisition of the property,” Oxley added.
The firm said it would receive a refundable deposit of S$7.5 million ($5.5 million), to be held in escrow, shortly after the acceptance of the EOI.
AEW has been an active player in Singapore’s real estate investment space. Last week, the Boston-headquartered firm sold Rivervale Mall to SC Capital Partners for S$230 million ($170 million). AEW purchased the mall from CapitaLand Mall Trust in 2015 for S$190.5 million ($141 million).
In June of last year, AEW achieved the final closing of its third Asia Pacific value-added fund – AEW Value Investors Asi III, which secured $1.12-billion in capital commitments.
The fund focuses on acquisition of assets in key gateway cities across the Asia Pacific region, principally Hong Kong, Singapore, Seoul, Shanghai, and Sydney, as well as Beijing and Melbourne.