Oxley Holdings, over the next few months, stands to reap results from its early acquisitions of landbank in 2017 as Singapore's property cycle turns up.
Eric Low, deputy CEO of Oxley Holdings.
NextInsight file photo.After CityDev, Oxley has the second largest landbank in Singapore.
Oxley has been moving fast to secure approvals to launch its projects in 1H2018, in order to be ahead of other developers.
Oxley's deputy CEO, Eric Low, gave a firmer timeline at last Thursday's 1HFY18 briefing when he said "by August", Oxley would hopefully have launched all its projects.
|
Stock price |
69 cents |
|
52-week range |
42-70 cents |
|
PE (ttm) |
8.9 |
|
Market cap |
S$2.25 billion |
|
Shares outstanding |
3.24 billion |
|
Dividend yield |
0.9% |
|
1-yr return |
65% |
|
Source: Bloomberg |
|
The first batch -- including East Coast and Pasir Panjang projects -- would be launched in March.
Oxley's portfolio of to-be-launched Singapore projects -- including JVs -- have a gross development value (GDV) of about S$5 billion, of which S$3 billion is attributable to Oxley.
This will be a key revenue driver for Oxley over the next few years, on top of the S$1.8 billion of presales achieved in ongoing projects, mainly overseas.
(S$1.3 billion is attributable to its very successful Royal Wharf project in London. See Oxley's 1HFY18 Powerpoint presentation material.)
|
Property |
Stake |
Tenure |
GFA |
GDV |
GDV attributable |
|
494 Upper East Coast |
100% |
FH |
19,472 |
$32m |
$32m |
|
Lotus @ Pasir Panjang |
100% |
FH |
128,159 |
$217m |
$217m |
|
Serangoon Ville |
40% |
LH |
831,350 |
$1.35 b |
$540 m |
|
Rio Casa |
35% |
LH |
1,109,447 |
$1.44 b |
$504 m |
|
Vista Park |
100% |
LH |
446,939 |
$827 m |
$827 m |
|
Mayfair Gardens |
100% |
LH |
342,647 |
$720 m |
$720 m |
|
3 Tessensohn Road |
100% |
FH |
54,497 |
$105 m |
$105 m |
|
Apartment 8 |
100% |
FH |
20,303 |
$37.5 m |
$37.5 m |
|
208YCK |
100% |
FH |
19,784 |
$28.4 m |
$28.4 m |
|
Total |
|
|
|
$4.76 billion |
$3.0 billion |
According to Oxley, "most" of its sites are enjoying an uplift in land value as neighbouring plots were acquired later by other developers at higher per sq ft per plot ratios.
Ching Chiat Kwong, chairman of Oxley.
NextInsight file photo.For example, through an en-bloc sale, Oxley bought Mayfair Gardens in Rifle Range Road at 1,244 psf ppr while Allgreen later paid an average of $1,800 psf ppr for three developments (Royalville, Crystal Tower and a 4th Avenue government land sale).
See pages 15 & 16 of Oxley's presentation material.
"Oxley will launch ahead of other developers and when the others launch at higher prices, our projects will sell further," said Oxley chairman Ching Chiat Kwong.
UOB Kayhian, in a report in Oct 2017, said: "Oxley is a key beneficiary of the property upcycle in Singapore."
