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Oxley acquires Chevron House, property developer Centra Cove

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Oxley Holdings announced on Dec 14 it has entered into sale and purchase agreements to buy Raffles Place office building Chevron House for S$660 million, as well as Singapore property developer and investment holding company Centra Cove for a cash consideration of US$12 million.

OXLEY Holdings announced on Dec 14 it has entered into sale and purchase agreements to buy Raffles Place office building Chevron House for S$660 million, as well as Singapore property developer and investment holding company Centra Cove for a cash consideration of US$12 million.

Deka Singapore A Pte Ltd has sold Chevron House, a 32-storey commercial development with 27 levels of office space and a five-storey retail podium, with a net lettable floor area of 24,273 square metres (sq m).

Oxley intends to renovate the commercially zoned site, which has a land area of 2,777.9 sq m.

A deposit of S$33 million and Goods and Services Tax (GST) have been paid to the vendor and the vendor's solicitors respectively, with the balance of the purchase price with any applicable GST payable upon completion of the acquisition on March 29, 2018.

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The acquisition is financed through internal resources and bank borrowings, and Oxley expects it to have no impact on its financials.

Separately, Oxley announced it is acquiring Centra Cove from unrelated third parties Phuong Tuan Long and Teou Chun Tong Jason.

Centra Cove holds 75 per cent of the licensed charter capital of Vietnamese company Phu Thinh Land (PT Land), of which 16.81 per cent of the charter capital has been paid up.

With the purchase, Oxley will have a stake in and co-develop a residential project in Dong Nai province in Vietnam with a state-owned construction company.

The consideration of around S$16.2 million was arrived at through arm's length negotiations after Oxley's assessment of the project's potential value.

The vendors were paid US$5.63 million prior to the purchase agreement on Dec 13, with the balance to be paid upon the fulfilment of certain conditions. The purchase is funded by internally generated funds and bank borrowings.

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