Chevron Enters Exclusive Negotiations for Sale of 18,000 Acres of Land and 1.7 Million Square Feet of Income-Producing Properties

Strategic Insights -

Chevron Corp. has announced that it is entering into exclusive negotiations with a bidding group for the sale of a substantial portfolio of properties. The portfolio includes 18,000 acres of land for residential and commercial development, as well as 1.7 million square feet of income-producing properties, all located in California. This move aligns with Chevron's strategy to focus on its core businesses, such as oil, gas, and chemicals. As part of this plan, the company will take a charge of approximately $170 million against its 1995 third-quarter earnings.

Key Takeaways:

  • Chevron is selling 18,000 acres of land for residential and commercial development in California.
  • The company is also selling 1.7 million square feet of income-producing properties in California.
  • The sale is part of Chevron's plan to exit the real estate development business and focus on its core businesses.
  • The bidding group consists of an affiliate of Morgan Stanley Real Estate Fund II, L.P., and Paclaco, Inc., a California corporation.
  • Chevron anticipates completing the transaction in the first quarter of 1996 if negotiations are successful.
  • The company will take a charge of approximately $170 million against its 1995 third-quarter earnings.
  • The sale is consistent with Chevron's ongoing strategy to focus more on its core businesses.

Statistics:

  • 18,000 acres of land for residential and commercial development in California.
  • 1.7 million square feet of income-producing properties in California.
  • $170 million charge against 1995 third-quarter earnings.
  • First quarter of 1996 expected completion date for the transaction.

Sources:

  • (CHV) CO: Chevron Corp.
  • (CHV) ST: California
  • "Chevon Corp." - CONTACT section of the original text: Bonnie Chaikind of Chevron, 415-894-1200.