Oxley plans five more launches by end-2010

Published October 22, 2010

Oxley plans five more launches by end-2010

By UMA SHANKARI


PROPERTY developer Oxley Holdings, which will soon be listed on the Singapore Exchange's Catalist board, plans to launch another five residential and commercial projects by end-2010.

Chief executive Ching Chiat Kwong told BT that Oxley will roll out freehold projects at Devonshire Road, Holland Road, Kovan Road, Stevens Road and Telok Kurau Road with a total of 338 residential units and 28 shops in all by the end of this year.

He is bullish about the prospects of Singapore's property market. 'The (recent) government measures tread a fine line but they are aimed at speculators and to prevent an asset bubble,' Mr Ching said. 'The outlook for the property market here is still strong.'

Including the five developments due to be rolled out by the end of this year, Oxley has in its landbank a total of nine residential and residential-cum-commercial sites on which a potential 517 homes and 35 shops can be built.

The property developer also owns a 60-year leasehold industrial site at Ubi Road. It also bought a 21-storey freehold office block at Robinson Road, The Corporate Office, from City Developments for $215 million last month. Oxley intends to redevelop the project in the future.

The company has launched five developments in Singapore since Mr Ching set it up with other investors in 2009. Three of the projects - Suites@Katong, Parc Somme and Loft@Rangoon - have been fully sold. The remaining two, Viva Vista and RV Point, are around 99 per cent and 84 per cent sold respectively.

Yesterday, Oxley launched its initial public offering (IPO), which is the largest to-date on SGX's Catalist board. The company said it will sell 224 million new shares at 38 cents each to raise $81.2 million in net proceeds. The shares are offered only by way of placement.

The new shares represent 15 per cent of Oxley's post-IPO enlarged issued share capital.

The company intends to use the proceeds from the listing to partially finance the acquisition of five existing land sites, acquire new development sites for its land bank and for general corporate and working capital requirements.

Mr Ching also said that the company will pay out at least 50 per cent of net profits as dividends for its 2011 financial year (FY), at least 30 per cent for FY2012 and at least 20 per cent for FY2013 to FY2015.

Oxley's share offering will close at noon on Oct 27 and trading of the shares is expected to start on Oct 29.

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