On January 10, 2019, renowned real estate developer, Oxley Holdings announced that they are selling their landmark projects, namely, the Mercure and Novotel hotels which is located along the Stevens Road, and had already accepted a Letter Of Intent (LOI) issued by their buyer.
Though the identity of the purchaser remains undisclosed, Oxley announced that the offer was made for $950 million.
The two hotels were opened to the public in 2017. They hold the distinction of being Oxley Holdings’ first project in their hospitality venture.
Situated close to the Scotts Road and shopping paradise of the famous Singapore’s Orchard Road, the Mercure Singapore and Novotel Singapore on Stevens are an urban architectural treat. Other than 254 hotel suites respectively, Novotel Singapore on Stevens also offers other facilities such as a 400-seat ballroom, an infinity pool, meeting facilities, food and beverage outlets, and a 24-hour fitness center. It was awarded the Gold in the 2018 Melbourne Design Awards for its creative, aesthetic and crowd engaging urban architecture. The hotels have attracted a steady stream of guests both for purposes of business and leisure since their opening.
Oxley Holdings had acquired the land in Stevens Road in 2013 with a 103-year leasehold estate tenure for $318 million from Exklusiv Resorts. The site had then housed The Pinetree Club, Oxley then appointed hotel operator Accor in 2014 to establish the management of the Novotel Singapore on Stevens and Mercure Singapore on Stevens once they were opened in late 2017. Based on recent reports from Oxley Holdings the hotels have been jointly earning an annual turnover of an estimated $50 million at an 80% occupancy rate.
Oxley announced that though a LOI has been accepted, it is currently non-binding in nature and subject to both parties engaging and accepting a definitive sale and purchase agreement. The hotels have been offered up for sale owing to the prevalent conditions of the property market in Singapore.
2017 and 2018 had been a rollercoaster ride for Oxley as it extensively participated in acquiring new projects in the en-bloc mode. However, the dip in market prices has also seen a dip in its current property price holdings. To many, the intended sale of the hotels is Oxley’s safety measure from falling into debts.
The acceptance of the LOI has been made on the basis of a “willing-buyer-willing-seller” scenario. As per the contract, it has been agreed that the buyer will be able to carry out their role of due diligence as new owners once they pay in a non-refundable sum of $49,500,000. The agreement remains valid until April 15, 2019. They may continue to hold the said position on payment of future installments of $38,000,000 and $47,500,000 on February 28, 2019, and on the signed date of the sale and purchase (S&P) agreement
Below are some of the new launch condos by renowned property developer, Oxley Holdings