OXLEY: Steps up purchase of shares post-Brexit

Oxley’s award-winning Royal Wharf project in London along the River Thames comprises of 3,400 apartments and townhouses, about 15,000 sqm of office space as well as 5,000 sqm of retail and F&B space. Artist’s Impression: Company

OXLEY HOLDINGS repurchased close to a million of its shares from the open market over the past week, successfully stemming the market’s knee-jerk reaction to its exposure to the British pound.

989,100 shares were repurchased by the Group at prices ranging from 38.5 cents to 42 cents apiece and converted into Treasury shares. Last Friday, the Group’s Executive Chairman, Ching Chiat Kwong, also made personal purchases of 59,000 shares from the open market at about 42 cents apiece.

Since the start of this year, Oxley has bought back 18.7 million shares.

Mr Ching and the Group scooped up Oxley shares as the stock price hit an intra-day low of 38.5 cents last Friday. Investors had sold down the stock, spooked by the shock announcement that the UK had voted to leave the European Union.

The Group has some exposure to the UK property market -- it had an unbilled contract value of S$1.6 billion from its Royal Wharf project in London as at 31 May, and expects this to be recognized progressively over the next 3 to 4 years.

Over the past week (24 to 29 June), the GBP has depreciated by almost 10% to S$1.80/GPB. Thanks to the management’s swift action, Oxley’s stock price has edged down by only 3%, closing at 41.5 cents yesterday (29 June).

“London will remain attractive to global investors, especially to Middle Easterners and Asians. The GBP's depreciation will make our UK properties more affordable and appealing to overseas buyers.

"The impact of Brexit on our overall business will be manageable. Our long-term growth plan in the UK will remain unchanged.”

- Ching Chiat Kwong
Executive Chairman