News: Oxley clarifies it can repay its hefty debts

Mar 5, 2019

Oxley’s executive chairman and CEO Ching Chiat Kwong.

Developer Oxley Holdings has clarified that it expects to recognise a higher amount of revenue from its local and overseas developments than what was recently reported, revealed an SGX filing on Friday (1 Mar).

“The group’s local projects are worth approximately S$2.9 billion and the overseas projects to be launched (including those in Cyprus, Cambodia, Malaysia and London) are worth approximately S$4.6 billion,” said its executive chairman and CEO Ching Chiat Kwong.

He said this in response to a Business Times article published last week that claimed Oxley expects to receive about S$2 billion from its Singapore residential developments and S$500 million from projects in Malaysia, Cambodia, Cyprus and London.

The report also noted that the developer has 10 development sites in Singapore, of which nine have been launched. In total these are expected to offer around 3,800 units, of which around 50 percent has been taken up.

In the Business Times report, Ching highlighted that Oxley purchased most of its local residential land during the early stage of the collective sales fever in 2017 before prices increased significantly.

“When the rest of the projects get launched, the market will see the difference, because we are probably the cheapest in terms of psf prices… We started to take the bus first; we were not the last person to board the bus.”

In addition, the firm’s executive director and deputy CEO Eric Low shared that Oxley’s residential developments are mainly intended for the mass market, with prices ranging from $1,300 to $1,700 psf. These are situated mostly in heartland areas like Potong Pasir, Kent Ridge, Yio Chu Kang, Geylang, Hougang, Serangoon and Pasir Panjang.

Its most expensive project would probably be Mayfair Modern and Mayfair Gardens, which have an average unit price of $1,900 psf, said Low, adding that mass market homes are easier to sell as these are preferred by HDB dwellers looking to upgrade.

Furthermore, Ching said in the article that he is bullish that Oxley can service its S$1.6 billion debt due over the next three years, via the sale of units at completed developments in Singapore and abroad. Another reason is the disposal of the Mercure and Novotel Hotels here as well as properties in Dublin Landings, Ireland that are expected to generate gross proceeds of around S$1.4 billion.

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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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