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Oxley receives S$1.025 billion offer for Chevron House

OXLEY has found a buyer for Chevron House, after owning the Grade-A office building in Raffles Place for about a year.

The purchase consideration is S$1.025 billion, and the buyer is US-based real estate fund AEW, The Business Times understands. 

Oxley said on Thursday that it had accepted an expression of interest (EOI) to acquire Chevron House.

The EOI is not legally binding and is subject to the conduct of due diligence. 

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The building has a total net lettable area (NLA) of about 261,280 sq ft – comprising 215,667 sq ft of offices over 27 floors (from levels 6 to 32) and 45,613 sq ft of retail space on five floors. The development has unutilised gross floor area (GFA) of about 15,000 sq ft, based on earlier reports. 

A slide in Oxley’s corporate presentation last month shows that the plan is for the building’s NLA to increase by 43 per cent to about 374,165 sq ft, subject to approval from the authorities.

The S$1.025 billion consideration works out to about S$2,739.43 psf on the increased NLA of about 374,165 sq ft.

The consideration was arrived at on a “willing buyer-willing seller” basis. Chevron House sits on a site with a 99-year leasehold tenure since December 1989, leaving nearly 70 years’ balance lease.

Oxley completed the acquisition of Chevron House in March last year. It entered into a deal in December 2017 to buy the 32-storey building from Deka Singapore, a unit of Germany’s DekaBank Group, for S$660 million.

Trading in Oxley shares will resume on Friday. The shares added 3.13 per cent to S$0.33 on Wednesday before trading was halted.

On Wednesday, BT reported that AEW had sold Rivervale Mall in Sengkang for S$230 million.

Following its sale of Rivervale Mall, AEW will be left with three assets in Singapore, all in the Central Business District: Twenty Anson, 55 Market Street and the street-level unit at Prudential Tower.

In late-June 2018, AEW entered into a deal to buy Twenty Anson from CapitaLand Commercial Trust (CCT) for S$516 million. In the following month, AEW clinched 55 Market Street, in the traditional Raffles Place financial district, from Frasers Commercial Trust for S$216.8 million.

Nearby, in the Church Street/Cecil Street locale, AEW acquired the ground-floor space at Prudential Tower in 2017 for S$18.95 million.