The hotels along Stevens Road house a combined 772 rooms.
Oxley Gem which is a subsidiary of property developer Oxley Holdings has accepted a letter of intent (LOI) from an unnamed party to acquire its Mercure and Novotel Hotels along Stevens Road for $950m, an announcement revealed.
The Mercure and Novotel Hotels which house 254 and 518 rooms respectively, were acquired by Oxley in March 2013 and occupy a land area of 18,477 sqm.
Under the terms of the LOI, upon the receipt of a $9.5m non-refundable deposit by Oxley Gem, the purchaser will be entitled to carry out property due diligence in respect of the property during the period up to 15 April.
The purchaser will also pay a sum of $38m on 28 February and a further sum of $47.5m on the signing date of the definitive sale and purchase agreement or on 15 April, depending on which comes earlier, the announcement stated.
“The consideration was agreed on a ‘willing buyer-willing seller’ basis, taking into account the prevailing market conditions,” Oxley said in a statement.
The LOI is intended to be non-binding and is subject to, amongst others, the parties entering into a definitive sale and purchase agreement, the firm noted.
Photo from Oxley Holdings.
Do you know more about this story? Contact us anonymously through this link.