ExxonMobil flags sales after Southbank bonanza

The move to sell off more assets comes as Exxon’s local corporate accounts revealed it sold its Southbank office tower at more than four times its book value.

The land and buildings at 12 Riverside Quay were held in Exxon’s accounts at a written down value of $38 million.

The energy giant has more assets in its real estate portfolio – land as well as aviation refuelling assets, depots and sites – which it now plans to sell before the end of this year.

Its assets held for sale are valued at $42 million, although that may have included the Southbank headquarters.

Asked for further detail on the portfolio it aims to sell this year, a company spokesman said: “ExxonMobil continually reviews its global assets for their contribution towards meeting the company’s operating needs and financial objectives, as well as their potential value to others”.

Unlike listed property trusts, enterprises whose major business is not based in the property sector may not continually revise the value of their real estate assets in line with market values.

Even so, Exxon did not respond to a query about the difference between the Southbank property’s book value and the price it achieved in the market.

In February this year, Macau casino king Loi Keong Kuong, the owner of the Rio Casino in Macau, emerged as the buyer for the Southbank property.

Exxon has struck a deal with its new landlord to lease back the Southbank headquarters for 10 months.

It is a flexible arrangement which also allows the energy giant to remain in the 22,000-square-metre building for another 18 months with two three-month options.

That flexibility will enable Exxon to take up a 7100-square-metre tenancy in a $230 million office tower being developed by Mirvac in Melbourne’s Docklands.