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(08-02-2014, 11:27 AM)AlphaQuant Wrote: [ -> ]
(08-02-2014, 10:48 AM)felixleong Wrote: [ -> ]why is oxley taking too much risk?
whats the gearing?
how much of a decline if the property market would trigger any sort of trouble for Oxley?

total assets 3bio
Equity 500mio, Liability 2.5bio of which 2bio is debt
debt/equity ratio is thus 400%

3 yr paper issued (due 2017) goes for 5.1% so certainly not the cheapest name.

investors should demand a decent return on equity for their monies if they are to buy their common stocks.

When property in upcycle, whoever take on assets with max debts will looks like a

Property market moves in cycles. Quit/Deleverage while ahead is key to future prosperity.

Not all of the upstarts will survive.
Oxley is one of the most interesting property counters out there, with a NAV per share of 16 cents as of 31 dec 2013. Closed at 66 cents yesterday. Its market cap works out to around 2 billion.

With most other established property counters trading below NAV per share now, what do you think is going on? Is it really worth 4 x book value? Or are people out there "pretending"/"creating" optimism? Anyway, i think it is practically impossible for the policeman to catch this group of people. These people can always argue that there are hidden opportunities that others cant see.

Valuebuddies will obviously play it safe by ignoring such interesting counters
Good response to Oxley's London launch

Published on Mar 21, 2014

Artist's impression of the Royal Wharf development. In the background are the Millennium Dome and the Canary Wharf business district. -- PHOTO: OXLEY HOLDINGS

By Tee Zhuo

LARGE crowds have flocked to the launch of Singapore-listed Oxley Holdings' first British property, in London's Docklands area.

The first phase of the huge Royal Wharf project, stretching 500m along the River Thames, will be launched here today.

A queue began to form several hours before the start of yesterday's London launch. Nearly 1,600 registered weeks ago.

Sales figures were not available at press time given the time difference with London.

But Oxley chief executive Ching Chiat Kwong is hopeful about 25 per cent of the 811 units launched in the first phase will have been sold on the first day.

The site was bought in November last year for £200 million (S$421 million) from London's second largest developer, Ballymore, the project's joint manager.

Oxley borrowed more than $700 million last year. Second-quarter profit this year more than doubled to $25 million from $11.4 million, largely from revenue recognised from local projects such as The Commerce@Irving and Oxley Bizhub.

Since listing in October 2010, Oxley has launched 27 projects in Cambodia, Malaysia, China and Singapore, with most sold out. Royal Wharf is its largest investment.

The 16ha mixed-use site beside the Thames Barrier Park will include 3,385 homes for about 10,000 residents, with a school, retail outlets, offices, leisure facilities and restaurants.

Come 2018, the area will be served by the Custom House station on the high-speed Crossrail line, which will link it to Heathrow Airport and Bond Street.

Mr Ching said developing in London "had always been a dream" for him. He took the opportunity after research showed demand for affordable housing was high given rising prices there.

Commenting on the project's Singapore launch today at the Hilton Hotel, Mr Ching said Singaporeans are "sensible buyers".

"When they see a good product, they will buy it."

Prices range from £235,000 for a studio flat to over £1 million for a townhouse. Agents projected rental yields of up to 5 per cent.

London Mayor Boris Johnson welcomed the development. He said last October he was "thrilled at this demonstration of... confidence".

Ms Doris Tan, director of international residential property services at JLL Singapore, predicts that projects such as Royal Wharf will become increasingly popular.

London's policy to "regenerate other areas further east and south of the river" is an important factor, she said. The city has ambitious plans to transform the rundown Docklands area into its third business district.

As part of the Royal Docks Enterprise Zone, a £1 billion deal was signed last May with Chinese developer Advanced Business Park to create a 14ha commercial centre. Mr Ching said he is "looking forward" to serve the inflow of Chinese professionals, which will create a "melting pot" of different nationalities in the district.

Oxley is one of several local developers looking to London amid a slowing market here after property cooling measures.

City Developments last September made its first acquisition in London - a £80 million site near famous department store Harrods in Knightsbridge.

Lum Chang Holdings bought a 30,099 sq ft London hotel near tourist hotspots Hyde Park and Kensington Gardens for about £26 million in January.

Meanwhile, Mr Ching said he hopes that "a sustainable urban development model can be replicated in other possible sites".
Not Vested

Oxley's London project a draw here

Published on Mar 22, 2014

Buyers at the Royal Wharf launch here yesterday. Almost all its studio apartments, starting at £235,000 (S$495,500), were sold. -- ST PHOTO: TEE ZHUO

By Tee Zhuo

BUYERS flocked to the Hilton Hotel yesterday to check out the first London residential project being built by Singapore-listed Oxley Holdings.

More than half of the 811 units at Royal Wharf launched in London and Singapore have been snapped up, with almost all studio apartments - which start at £235,000 (S$495,500) - sold.

Almost 200 cheques had been submitted hours before the launch, the firm said yesterday.

The big response here follows a large turnout at the London launch on Thursday which went "phenomenally well", said Mr Richard Oakes, the sales and marketing director at project manager Ballymore.

Mr Oakes said queueing for property launches "is not something Londoners do" but lines formed hours before opening, with more than 300 prospective buyers turning up at launch time.

Oxley bought the huge 16ha mixed-used project in the east London Docklands area last November for £200 million from Ballymore, London's second-largest developer.

The site beside the Thames Barrier Park will include 3,385 homes for about 10,000 residents, with a school, shops, offices and leisure facilities.

They will be served by the Crossrail line, which opens in 2018 to link the area to Heathrow Airport and Bond Street. The first phase is expected to be completed by 2016.

Singaporean Justin Koh, 40, who bought a two-bedder, which starts from £435,000, said buying from a local developer "provides some security".

Mr John Morley, managing director of British property leasing firm Johns&Co predicted "rental yields of over five per cent".

The project rides on efforts to transform the Docklands area into the city's third business district. London mayor Boris Johnson sealed a £1 billion deal with a Chinese developer last year to create a 14ha commercial centre.

Since listing in 2010, Oxley has launched 27 projects in Asia, with most sold out. Last year, it obtained $700 million through six debt issuances to fund projects.

Second-quarter profits for the three months to Dec 31 more than doubled to $25 million from $11.4 million in the same period a year earlier.
The Chairman/CEO looks seriously prosperous Big Grin Needs to exercise more.

It does look like this is a property developer that is going as hard and fast as it can. Totally opposite of conservative. Mainly riding the property boom which is flowing out from china.

Will be interesting to see what will happen during property downturn.
Oxley may list overseas property business on Catalist

Published on Apr 07, 2014

By Dennis Chan Deputy Money Editor

OXLEY Holdings is considering restructuring its overseas property business, which may include listing it separately on Catalist.

The company disclosed this late last Friday in response to a Singapore Exchange query over the trading activity of its shares.

Oxley shares had climbed by 4.5 cents or 6.6 per cent to 73 cents on turnover of 8.5 million units that day.

In its initial response, Oxley said it was not aware of the reasons for the share activity, save that it may be due to the successful launch of a property project in London.

Last month, Oxley said it had launched Phase 1 of its premier London waterfront development, Royal Wharf, in London and Singapore to resounding market response, collectively selling more than half of 811 units on the first day of its launch in each location.

Almost all studio apartments - which start at £235,000 (S$490,400) - were sold.

"The company surmises that the successful launch of Royal Wharf may be a possible explanation for the trading."

In a subsequent update on Friday night, Oxley's board disclosed that in conjunction with the development of the Royal Wharf, the company is also "exploring the possibility of restructuring the group's business, in particular, its property development business outside Singapore (including but not limited to, the Royal Wharf), including the feasibility of listing such overseas property development business on the Catalist board".

Oxley has engaged professional advisers to advise on the proposed restructuring. The board noted that the restructuring is in its preliminary stages and that there is no assurance or certainty that it will materialise.

Royal Wharf has been a big success for Oxley, which bought the 16ha mixed-use project in the east London Docklands area last November for £200 million from Ballymore, London's second-largest developer. The site beside the Thames Barrier Park will include 3,385 homes for about 10,000 residents, with a school, shops, offices and leisure facilities.

They will be served by the Crossrail line, which opens in 2018 to link the area to Heathrow Airport and Bond Street. The first phase is expected to be completed by 2016.
I am a little concern over their tremendous debt overhead. Like other developers, many have ventured London or downunder. However, I am a little skeptical on their execution of overseas project.. Instead of value play, it seem like pump and dump.
After London, Malaysia, Cambodia, China.. now it's going into Myanmar.. has set up a subsidiary.
Oxley appoints Accor to run two new hotels

The Stevens Road hotels will be run under Novotel and Ibis brand names

Foray into hospitality: The hotels, to be part of Oxley's hospitality-cum-commercial development in the area, are expected to open for business by end-2016
OXLEY Holdings, a homegrown lifestyle property developer, has appointed hotel operator Accor to run two of its new hotels along Stevens Road.
The hotels, to be part of the company's hospitality-cum-commercial development in the area, will be run under the Novotel and Ibis brand names and are expected to open for business by end-2016.
Oxley said in a statement yesterday: "This will be a timely move that should cater to the anticipated increase in business and tourist arrivals to Singapore in the coming years."
It added that the project will also provide a recurring income stream.
Oxley has launched 27 developments in Singapore thus far; it has two projects in the pipeline, one in Oxley Rise and the other, in Joo Chiat.
The Stevens Road project is Oxley's first foray into hospitality.
Company chairman and chief executive officer Ching Chiat Kwong said that Accor had a proven track record in building Novotel and Ibis into successful worldwide brands, so "we are looking forward to seeing the project take shape".
Novotel and Ibis have a combined global network of more than 1,400 hotels, with more than 300 of these in the Asia-Pacific alone.
The two hotels will bring Accor's Singapore portfolio to nine hotels.
They will sit on the site of the former The Pines Country Club, which was acquired by Oxley in March last year as an investment property. The land parcel, about 198,000 sq ft in size, has a gross permissible floor area of about 318,000 sq ft and a 103-year leasehold tenure.
When completed, Novotel Singapore on Stevens will have 254 rooms, a 500-seat ballroom, meeting facilities, food and beverage outlets, a fitness centre and a swimming pool. Ibis Singapore on Stevens will have 528 rooms, a lobby bar or cafe and a gymnasium.
The 10-storey development will be near the Scotts Road and Orchard Road shopping belts, and accessible by expressway from Changi Airport and from the Central Business District.
Rare insider buying of Oxley last Friday. Major shareholder Tee who own more than 12% and one of the founders of Oxley bought nearly 300 lots at slightly above 70ct. Perhaps he bought some more in yesterday's selling down.

At 69ct, the ex-stock split price will be about 45.5ct. Stock split will be approved soon in an EGM, so at current price, stock may be worth a look again although its not a value stock.

Split: 2 shares become 3
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