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Oxley appoints agents for sale of Mercure, Novotel Hotels

HAVING initially called off the sale of its Mercure and Novotel Hotels on Wednesday, property developer Oxley Holdings announced on Thursday that it has appointed CBRE, Jones Lang LaSalle Property Consultants and JLL Hotels & Hospitality Group as its exclusive agents for the properties.

The agents will be tasked with sourcing, marketing, evaluating, negotiating and securing a purchaser for the hotels on Stevens Road. The appointment will expire in six months, subject to extension under the same terms and conditions by written mutual agreement.

Oxley Holdings executive chairman and chief executive officer Ching Chiat Kwong said the developer has received strong interest from enquirers.

The original sale had been called off as, among other things, a S$38 million deposit had not been made by the buyer, Gracious Land.

JLL senior vice-president for investment sales Adam Bury said Singapore's hotel market is experiencing an upward swing in trading performance as new supply becomes limited. "The freehold nature of the site speaks for itself, with such assets rarely trading in the market – the last similar transaction was in 2013, and with the recent increase in development charges making land acquisitions for hotels prohibitive, we expect to see strong interest for the Stevens Road sale," he added.

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CBRE executive director for capital markets Galven Tan said CBRE has seen interest in hotels picking up significantly over the last 12 to 15 months, with enquiries from multiple international groups. Of the Stevens Road hotels, he said: "Given the strong attributes, we anticipate strong interest from local and international investors."

Oxley shares closed unchanged at 32 Singapore cents on Thursday before the announcement.

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