Buyer keen to scoop up S$950 million worth of Oxley Holdings’ properties
The property developer has accepted a letter of intent for the purchase of its Mercure and Novotel hotels along Stevens Road, Singapore.
![Mercure and Novotel hotels on Stevens Road, Singapore](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/ig_trading_floor_1.jpg/jcr:content/renditions/original-size.webp)
Property developer Oxley Holdings said in a regulatory filing on the Singapore Exchange on Thursday night that it has received and accepted a letter of intent for the purchase of its Mercure and Novotel hotels along Stevens Road, Singapore for S$950.00 million.
The letter is non-binding and subject to the parties entering into the sale and purchase agreement. The consideration of the deal was agreed on a “willing-buyer-willing-seller” basis, which takes into account the existing market conditions, Oxley said.
The identity of the buyer was not disclosed in the filing. Under the terms of the deal, once 1.00% of the considered sale price or S$9.50 million has been received by Oxley Gem, the wholly-owned subsidiary of Oxley, the purchaser can conduct due diligence on the property during the period until April 15th, 2019.
The buyer will have to pay a sum of S$38.00 million, or 4.00% of the total deal value on February 28, 2019, and a subsequent sum of S$47.50 million on the agreed signing date, or April 15, 2019, whichever is earlier.
Oxley noted that none of the directors or controlling shareholders of the company has any interest, directly or indirectly, in the proposed transaction.
Investors reacted positively on the deal on Friday and Oxley’s counter spiked 6.78% or S$0.02 to close the day’s trading at S$0.32.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/Top-default-banner_CFD.jpg/jcr:content/renditions/original-size.webp)
See your opportunity ?
Seize it now. Trade over 17 000 markets on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.