The Singapore-listed property group is going ahead with its launch plans even in the face of harsh property cooling measures. It asserts that it is well diversified and can withstand the hit better than most. A good example will be Mayfair Gardens by Oxley.
This was supposed to be a big year for Singapore-listed property group Oxley Holdings. Having amassed $2 billion worth of land last year — including en bloc sites — it had one of the biggest landbanks among property developers in Singapore. The developer had planned a 2018 rollout of eight to 10 projects with a total of 3,900 units by year-end. Mayfair Gardens By Oxley is one of them.
Low (left) and Ching went on a shopping spree from July 10 to 12, buying close to 14 million Oxley shares between them (Picture: Samuel Isaac Chua/ The Edge Singapore)
Oxley has been on track, with a new project launched every month or every other month. So far, it has launched five projects this year. It has also sold a total of 948 units and delivered $1 billion in residential sales in Singapore this year. That was until the government unleashed a ninth round of property cooling measures on July 5. “The measures were sudden and quite provocative,” says Ching Chiat Kwong, Oxley’s executive chairman and CEO.
The measures also sent property stocks tumbling. Oxley’s share price fell 15.85%, from 41 cents at the close on July 5 to 34.5 cents at the close on July 6, before recovering to 37 cents on July 25. “After the property cooling measures, we decided to do a health check on ourselves,” says Eric Low, Oxley’s deputy CEO. “After we did the numbers, we wanted to justify to people that we’re in far better shape than [they] think.”
Oxley held a corporate presentation on July 9 for 59 institutional investors and analysts to demonstrate that beyond the $1 billion in residential sales in Singapore, it has also clocked another $446 million in sales from its overseas projects so far this year.
Convinced by the corporate presentation, Ching relates: “I told Eric, ‘We’ve been working like dogs and didn’t even realise how big Oxley has become. I think we’d better go and buy Oxley’s shares.’
The duo went on a buying binge in the subsequent days. Ching swept up more than 11 million Oxley shares on the open market over three days — from July 10 to 12 — for $3.9 million, increasing his stake in the company to 41.45%. Low bought 2.97 million shares on July 10 and 11 on the open market for $1.05 million, or an average price of 35.4 cents apiece.
Oxley is not going to let the property cooling measures derail its launch plans this year. “We’re left with only five months [this calendar year],” says Ching. “We’re going [to launch] at breakneck speed.”
According to Low, projects comprising a total of 3,000 units have already been launched in the first six months of the year. “Planning is underway for the remaining 900 units. We are going to launch when we get planning approval and move forward,” he adds.
The remaining sites in Oxley’s Singapore landbank include Mayfair Gardens by Oxley on Rifle Range Road (off Dunearn Road), purchased for $311 million ($1,244 psf per plot ratio) in November; and Vista Park on South Buona Vista Road, purchased for $418 million ($1,096 psf ppr) last December. “We know these locations very well because we have launched and sold Viva Vista on South Buona Vista Road and The Verandah Residences nearby on Pasir Panjang Road,” says Ching. The Dunearn Road-Bukit Timah area is also familiar to Oxley since it has developed and sold a mixed-use development there: KAP Mall and KAP Residences at King Albert Park. (Mayfair Gardens by Oxley is also in close vicinity of King Albert Park MRT Station)
The new development at Mayfair Gardens by Oxley will have a ‘very British, very colonial’ theme (Picture: The Edge Singapore)
Last December, Oxley purchased a cluster of properties on Balestier Road for $38 million. It wants to amalgamate the properties with the site at 3 Tessensohn Road that it purchased last November.
According to Oxley’s timeline of launches this year, the new development at Mayfair Gardens by Oxley is scheduled for launch in early September, followed by the Vista Park site in the middle of that month. Meanwhile, the Balestier Road-Tessensohn Road site will be launched in early November.
“Besides Mayfair Gardens by Oxley and Vista Park, the remaining projects are small; for instance, the one in Potong Pasir [at 21 Meyappa Chettiar Road],” notes Ching. “The remaining five projects are all in mature estates.”
Mayfair Gardens by Oxley will have a “very British, very colonial” theme, given its name. It will also capitalise on its proximity to the King Albert Park MRT station, says Ching. Meanwhile, the attraction of the Vista Park site is its proximity to Kent Ridge Park and Southern Ridges Nature Reserve.
“In Singapore, we did $1 billion [worth of residential sales] in the first six months of this year, with another half a billion from overseas projects,” says Ching. “So, this year, we’re on target to hit $3 billion in sales in Singapore and $1 billion from overseas projects.”
The group’s residential land value (based on effective stakes) is $1.5 billion and represents just 43% of its Singapore portfolio, says Low. Its two hotels at 30 Stevens Road (Novotel and Mercure) are valued at $900 million (26%) of its portfolio; its office properties $716 million (20%); commercial, $205 million (6%); and industrial $177 million (5%).
The Peak is a mixed-use development in Phnom Penh; CapitaLand has been appointed manager for the project’s 420,000 sq ft mall (Picture: Albert Chua/The Edge Singapore)
At Oxley’s corporate presentation, attendees were told that Singapore represents just $2.6 billion (21%) of the gross development value of its remaining projects. Overseas projects, on the other hand, have a GDV of $10 billion (79%).
The $446 million in revenue from overseas sales were from units sold at projects such as Royal Wharf in London; SO Sofitel Residences in Kuala Lumpur City Centre (KLCC); Dublin Landings in the capital of Ireland; and The Palms in Phnom Penh, Cambodia.
Given the latest round of property cooling measures, Ching foresees some investors switching to alternative assets and even overseas properties. On July 17, Oxley launched its strata retail units at The Peak in Phnom Penh at an exhibition in Singapore and cities in China. It sold 285 units over two days and released more commercial units for sale due to “overwhelming response”. So far, more than 300 units have been sold. CapitaLand has been appointed to manage the 420,000 sq ft, five-storey mall at The Peak, a joint development by Oxley and World Bridge Land.
ABOUT MAYFAIR GARDENS NEW LAUNCH
Mayfair Gardens is the upcoming new condominium that is slated to launch in early September 2018. Following the preceding Mayfair Gardens Enbloc sale, this new condominium is a highly anticipated launch in the district D21 Bukit Timah Estate, Singapore. The land parcel where Mayfair Gardens Condo sits on is bounded by Rifle Range Road and situated off the Dunearn Road and Bukit Timah Road.
Mayfair Gardens is very close to prestigous schools including Methodist Girls’ Primary and Secondary School, Nanyang Primary School, Nanyang Girls’ High School and Hwa Chong Junior College. In terms of connectivity, a MRT station is a 5-min walk from the Mayfair Gardens, because it is only 330m from King Albert Park MRT station of the Downtown Line, in between Sixth Avenue and Beauty World MRT Station. Based on urban planning, King Albert Park station will become an interchange of the future Cross Island line.
Mayfair Gardens is also next to the Pan Island Expressway (PIE), which connects drivers to all parts of Singapore. Centrally located, it will only take around 10 minutes to drive to Orchard Shopping District and 17 minutes’ drive to the Central Business District (CBD).
There is no lack of amenities, retails, dining and entertainment options for the residents of Mayfair Gardens, they will be spoilt for choice. Beauty World Center and Bukit Timah Shopping Center is just one MRT stop away from the King Albert Park MRT station or a 5-min drive from Mayfair Gardens.
For more detail info on Mayfair Gardens Launch, CLICK HERE.
|Project Name||Mayfair Gardens|
|Address||8, 10, 12 and 14 Rifle Range Road|
|Developer||Citrine Property Pte Ltd|
(Subsidiary of Oxley Holdings Limited)
|Site Area||10788.8 sqm|
|No. of Units||215 Units|
|No. of Storey||5 Storey|
|No. of Block||4 blocks|
|Unit Mix & Size Range||1 Bedroom to 4 Bedrooms, Penthouse|
|Expected TOP Date||To be confirmed|
Condominiums that are within a short walk of an MRT station are typically popular and well sought after for investment or own stay. It is very convenient for staying in and much easier to rent or resale, and have a great capital appreciation potential.
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