SINGAPORE (Jan 10): Oxley announced that its wholly-owned subsidiary, Oxley Gem, has accepted a letter of intent (LOI) today for the purchase of Mercure and Novotel hotels located at 28 and 30 Stevens Road for a total consideration of $950 million.

The LOI is intended to be non-binding and is subject to the parties entering into a definitive sale and purchase agreement.

Under the terms of the LOI, upon receipt of the sum of $9.5 million, or 1% of the consideration, by Oxley Gem, the purchaser shall be entitled to carry out property due diligence during the period up to Apr 15.

The purchaser shall then pay $38.0 million, or 4% of the consideration, on Feb 28, and a further sum of $47.5 million, or 5% of the consideration, on the signing date of the sale and purchase agreement or Apr 15, whichever earlier.

The deposits are non-refundable, save upon the occurrence of certain events listed in the LOI.

Shares in Oxley closed 3.51% higher at 30 cents on Thursday.