Singapore’s Oxley Holdings sells CBD office building for $750m

Image from Chevron House's website

Property developer Oxley Holdings on Tuesday announced that it has sold its entire stake in Chevron House, a 32-storey office building in Singapore’s central business district, for S$1.025 billion ($750 million) in cash and assumed debt.

The buyer is Golden Compass (BVI) Limited and the proposed sale is subject to approval by Oxley’s shareholders.

In March, US-based fund manager AEW Capital Management was said to have made a $758 million unsolicited bid for Chevron House.

Oxley, which bought the building in December 2017 for S$660 million, had been seeking buyers for the property as part of its ongoing deleveraging efforts. According to Bloomberg, the developer had total debt of S$3.9 billion and cash and cash equivalents of S$248.5 million as of December 31, 2018.

The company currently has three debt tranches due in 2019, 2020, and 2022. The first tranche of S$300 million bonds is due on November 05, 2019; the second tranche comprising S$150 million in notes is due on May 18, 2020, and the third tranche comprising S$150 million in debt is due on January 31, 2022.

The proceeds received from the sale of Chevron House will be received in two parts. The first part will comprise an aggregate sum of S$210.0 million received upon the completion of the proposed sale, where 82.35 per cent of the issued and paid-up capital of Oxley Beryl, a wholly-owned subsidiary of Oxley, and the owner of Chevron House, will be transferred to Golden Compass.

The second part of the sale will be the discharge of Oxley Beryl’s bank loans and payment of the balance after completion of the sale. Following that, the balance of the issued and paid-up capital of Oxley Beryl will be transferred to Golden Compass.

Shares of Oxley Holdings Limited rose by 1.5 Singapore cents, or 5.0 per cent to S$0.315 in early trading on Tuesday.