Oxley to acquire 40% stake in Australian property firm
Ching Chiat Kwong, Executive Chairman and CEO at Oxley Holdings.
Property developer Oxley Holdings plans to acquire a 40 percent stake in Pindan Group, a leading property and construction company in Western Australia.
In an SGX filing this week, Oxley revealed that it will invest A$32 million in Pindan, comprising the acquisition of shares that is expected to help in securing new development projects.
Established in 1977, the privately-owned company has an annual turnover of more than A$500 million, with more than A$1 billion work on hand. Pindan recently expanded into other Australian states, including Queensland and New South Wales.
Oxley noted that its involvement in Pindan will enable the Australian company to grow its project portfolio, as well as accelerate its transition from being a major Western Australian builder to a national developer.
The investment is in line with Oxley’s strategy to partner with local companies overseas when venturing into new markets.
One example is The Royal Wharf project in London. Featuring 3,400 homes, the 36.3ha waterfront township development has started handing over completed units to buyers, contributing a steady revenue inflow to the group.
“Australia is a huge property development market that has been on our radar screen for us to explore and venture into,” said Oxley Executive Chairman and CEO Ching Chiat Kwong.
“We are confident that the partnership and synergy between Oxley and Pindan will lead to attractive business opportunities that benefit both parties.”
As at 30 September 2016, Oxley had an unbilled contract value of S$2.7 billion, with S$0.9 billion from Singapore projects and S$1.8 billion from overseas projects.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
