Proposed development to include firm's first hotel.
In a release to the Singapore Exchange over the weekend, Oxley Holdings Limited announced that the company’s wholly-owned subsidiary, Oxley Gem Pte. Ltd., had on 15 March 2013 been granted a conditional option to purchase the leasehold estate for a term of 103 years in the property known as 30 Stevens Road, Singapore by Exklusiv Resorts Pte Ltd at a purchase price of S$318,000,000,
Here are the complete details on the property, purchase price and funding from Oxley Holdings:
The leasehold estate in the Property shall commence on the day immediately after the date of the actual completion of the sale and purchase of the Property under the Option. The Property has a total land area of approximately 18,477 square metres. The Grant of Provisional Permission dated 27 February 2013 has been obtained for the proposed development on the Property of two blocks of eight-storey hotels, two blocks of two-storey commercial buildings and one block of four-storey clubhouse with basement (the “Proposed Development”). The Acquisition is in line with the growth of the Group’s business.
The purchase price of S$318,000,000 was arrived at on a willing buyer-willing seller basis after taking into account current market prices of properties in the surrounding area and the Company‘s assessment of the Property’s redevelopment potential. No full valuation has been carried out in respect of the Property.
A sum of S$10,000,000 (the “Option Fee”) had been paid upon the grant of the Option, and a further sum of S$21,800,000 will be paid upon the exercise of the Option, which shall be no later than seven working days from the date the Company obtains the approval of the Board, the Singapore Exchange Securities Trading Limited (“SGX-ST”) and/or the Company’s shareholders (if required) for the Acquisition and the Proposed Development (the “Approvals”). The balance of the purchase price shall be paid upon completion of the Acquisition which is scheduled to take place on 1 July 2013 or seven weeks from the date of the exercise of Option, whichever is later or such other extended time as the parties may mutually agree (the “Completion Date”).
Funding of Acquisition
The Acquisition will be funded by internal resources, bank borrowings as well as bonds to be issued by the Purchaser to the Vendor. The Purchaser shall issue to the Vendor S$100,000,000 6 per cent. guaranteed bonds due 2015 (the “Bonds”) (2015 being the second anniversary of the date of the issue of the Bonds). The Bonds shall be secured by a corporate guarantee given by the Company in favour of the Vendor. Interest on the outstanding principal amount of the Bonds shall accrue from the date of the issue of the Bonds and be payable every six months from the date of issue thereof. The Purchaser shall redeem S$50,000,000 of the Bonds at 100% of the principal amount of the Bonds and pay the principal amount, together with all accrued interest thereto, to the Vendor on the first anniversary of the date of the issue of the Bonds. Thereafter, the Purchaser shall redeem the remaining- 2 - S$50,000,000 at 100% of the principal amount of the Bonds and pay the principal amount, together
with all accrued interest thereto, on the maturity date.
The Proposed Development will include a hotel development. As the Group currently engages in the development of residential, industrial and commercial properties and has not previously undertaken any hotel development, the Company will convene an extraordinary general meeting to seek the approval of its shareholders for, inter alia, the Proposed Development. A circular will be despatched to shareholders in due course.
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