SINGAPORE (Dec 14): Oxley Holdings' subsidiary Oxley Beryl has entered into a sale and purchase agreement to acquire Chevron House for $660 million from Deka Singapore A.

Deka had acquired the property for US$420 million in 2010.

Located at 30 Raffles Place, Chevron House is a 32-storey commercial development with 27 levels of office space and a five-storey retail podium, with a net lettable floor area of 24,273 sqm.

The property sits on 2,777.9 sqm of land which is zoned "commercial". Oxley intends to carry out alterations and additions and asset enhancement works to the property, subject to obtaining all the necessary approvals from the relevant authorities.

Oxley says the purchase price was arrived at on a willing buyer-willing seller basis after taking into account current market price of properties in the surrounding area and assessment of the property’s potential rental yield after asset enhancement works.

A deposit of $33 million and Goods and Services Tax (GST) have been paid to the vendor and the vendor's solicitors respectively. The balance of the purchase price with any applicable GST is payable upon completion of the acquisition on March 29, 2018.

Oxley says it will finance the acquisition through internal resources and bank borrowings.

As at 12 noon, shares in Oxley are trading 1 cent lower at 62 cents.

See also: Oxley clinches stake in Vietnam residential project through $16.2 mil acquisition