Chevron Enters Into Exclusive Negotiations As Part Of Exit From Real Estate Development Business; Takes Charge Against Third Quarter Earnings
SAN FRANCISCO, Oct. 20, 1995 -- Chevron Corporation today announced it has entered into exclusive negotiations with a bidding group for the sale of 18,000 acres of land for residential and commercial development, and 1.7 million square feet of income-producing properties. All of the properties are located in California.
The sale is part of Chevron's plan to exit the real estate development business and is consistent with the company's ongoing strategy to focus more on its core oil, gas and chemicals businesses.
The bidding group consists of an affiliate of Morgan Stanley Real Estate Fund II, L.P., and Paclaco, Inc., a California corporation whose real estate investments in Southern California are conducted by Christopher Homes. If negotiations lead to a final agreement, Chevron anticipates completing this transaction in the first quarter of 1996.
Chevron will continue to market other development properties that are not part of this package.
As a result of withdrawing from the real estate business, the company will take a charge of approximately $170 million against 1995 third quarter earnings, which will be released next week.
Updated: October 1995