Oxley sells Mercure and Novotel Hotels for $950m

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.

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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.