Singapore-based property developer Oxley Holdings has appointed brokerage JLL and its JLL Hotels and Hospitality Group, along with CBRE, to find a buyer for its Novotel and Mercure hotels on Stevens Road in Singapore.
According to Asian business website Mingtiandi, a previous potential buyer was found to have breached the terms of a letter of intent for purchase of the S$950 million ($702.2 million) pair of properties. Gracious Land reportedly did not make a S$38-million deposit in time, and the deal fell through.
The newly appointed consultants for the sale now have joint exclusive rights to negotiate with new bidders for the 518-room Mercure and 254-room Novotel in Singapore’s Orchard Road area. The agents will be tasked with sourcing, marketing, evaluating, negotiating and securing a purchaser for the hotels.
The rebooted sale is one of number of disposals that Oxley has had in motion in recent months, including a pending S$1 billion sale of the Chevron House commercial building at Raffles Place, after the developer saw debt levels balloon last year, according to the company.
JLL SVP/investment sales Adam Bury told The Business Times Singapore's hotel market is experiencing an "upward swing" in deals as new supply becomes limited. "The freehold nature of the site speaks for itself, with such assets rarely trading in the market," Bury told the Singapore news site. "The last similar transaction was in 2013, and with the recent increase in development charges making land acquisitions for hotels prohibitive, we expect to see strong interest for the Stevens Road sale."