Oxley finalises deal for Chevron House; net lettable area to get 20% boost

OXLEY Holdings has completed its S$660 million acquisition of Chevron House, it announced on the eve of the Good Friday public holiday.

Full payment has been made to vendor Deka Singapore, a unit of Germany's DekaBank Group.

The purchase of Chevron House at 30 Raffles Place comes just as real estate services provider Savills World Research forecasts that average central business district (CBD) Grade A office rents in Singapore will rise 10 per cent each year from 2018 to 2019.

Oxley revealed that its asset enhancement initiative (AEI) for Chevron House will increase the net lettable area by at least 20 per cent.

It currently has an existing net lettable floor area of 24,273 square metres (sq m).

The 32-storey commercial building currently comprises of 27 levels of office space, together with a 5-storey retail podium, sitting on a land area of 2,777.9 sq m.

As of Mar 1, 2018, the occupancy rates for the office space and retail spaces are 97 per cent and 99 per cent, respectively.

Oxley's executive chairman and chief executive, Ching Chiat Kwong, said while Oxley's development projects are making good progress, its investment projects and asset base have become increasingly diversified, "laying a strong foundation for recurring income".

Resilient demand and limited upcoming supply in prime office spaces shows that the office property market will remain strong, benefitting asset owners, he added.

"We are confident that the asset enhancement work will bring more value to Chevron House and its tenants," Mr Ching said.

The finalisation of the acquisition, first announced on Dec 13, 2017, caps a busy week for the property developer, which announced on Wednesday that it had agreed to sell a 300-year lease of No 1 Dublin Landings for a total of 164.20 million euros (S$266.87 million) to Sol Estate Propco IE Dublin Landings SARL.

On Tuesday, it released a statement saying it had bought up freehold property Ampas Apartment for S$95 million.