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COMMERCIAL PROPERTY | Staff Reporter, Singapore
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Oxley's Chevron House sale to be completed by Q1 2020

It is currently undergoing asset enhancement initiative works.

Asset enhancement initiative (AEI) works at Chevron House at 30 Raffles Place have already commenced and are expected to be completed by Q1 2020, in time for its sale by Oxley Holdings, a filing with the Singapore Exchange (SGX) revealed.

Chevron House is a 32-storey commercial development comprising 27 levels of office space and a five-storey retail podium with an existing net lettable floor area of 24,273 sqm.

The group intends to divest the retail and banking units as soon as practicable, taking into consideration market conditions, and in any event, before the final completion of the proposed sale.

Oxley announced in end-April that it has agreed to sell its interest in Chevron House, owned by its subsidiary Oxley Beryl, to Golden Compass (BVI) for an aggregate value of $1.025b. Golden Compass is an investment holding vehicle, indirectly owned by AEW Value Investors Asia III (Jersey) and AEW Value Investors Asia III Parallel (Luxembourg), which are funds managed by Jersey-incorporated firm AEW Value Investors Asia III GP and Luxembourg-incorporated firm AEW Value Investors Asia III GP Partners, respectively.

Oxley also responded to SGX inquiries that the majority of the costs for the AEI will be funded by bank loans to Oxley Beryl, which Golden Compass will discharge upon final completion, whilst the remainder are to be funded by the proceeds from the first completion.

It explained that the 82.35% portion for the first part of the sale is $210m as a percentage of the total cost of Oxley's investment in Oxley Beryl up to that point, estimated at $255m.

Oxley purchased Chevron House in November 2017 for a consideration price of $660m.

Additionally, Oxley clarified in its statement that the agreed amount was arrived at by arms’ length negotiations between the purchaser and the company, and on a willing buyer, willing seller basis, taking into consideration the expected market value of the retail and banking units after the AEI works are completed. 

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