9 residential projects from boutique firm
About half of Oxley's planned units will be shoebox apartments
By Esther Teo
Units will range from studios of about 300 sq ft to penthouses of between 700 sq ft and 1,000 sq ft. Oxley CEO Ching Chiat Kwong (above) said there is demand from young professionals and immigrants. -- ST PHOTO: KEVIN LIM
BOUTIQUE developer Oxley Holdings expects to launch up to nine new residential projects within the next six months, said chief executive Ching Chiat Kwong yesterday.
They will be mid-tier to high-end developments, either incorporating a retail element or supported by existing commercial centres nearby, with most having fewer than 50 flats each.
The projects will offer about 552 shop and residential units in all, with some to be built in areas that touch Stevens, Kovan, Holland and Braddell roads.
Units will range from studios of about 300 sq ft to penthouses of between 700 sq ft and 1,000 sq ft.
About half of the residential units will be so-called shoebox apartments of less than 500 sq ft, said Mr Ching, who was speaking to The Straits Times the day the firm launched its initial public offering (IPO) on the Singapore Exchange's Catalist board.
It will sell 224 million new shares at 38 cents each, but there will be no public tranche.
'We are providing a lifestyle niche concept preferably with commercial elements at the first storey to cater to the singles' lifestyle.
'Even if it doesn't have shops, the surrounding neighbourhood will have amenities,' he added.
Mr Ching is confident that the small-format units - Oxley is a prominent developer of this type of flat - will be well received as quantum prices will be affordable.
'Singapore will also be the next big financial city. There will be a lot of talent coming in and they will seek to buy or rent such units, so it can be sustainable even for an investor... to see through retirement,' he added.
Mr Ching said that Oxley Holdings expects 'very stable results' despite the recent market cooling measures, which he said were good as they prevented speculators from driving up prices.
'It's also good for developers as sellers have lower expectations of their selling price for land; or if they decide to go en bloc, it is likely to be more successful.'
Mr Ching said that while buying sentiment will be dampened, there was genuine demand from the growing ranks of young professionals and immigrants to sustain the market.
'For units that I price reasonably with an affordable quantum, provided together with a lifestyle element, the chances for success, for a good take-up of the project. are good,' he said.
Meanwhile, the IPO will raise about $81.2 million in net proceeds.
The cash will be used to partially finance the acquisition of five land sites already on its books, acquire new developmental sites and for working capital, Oxley said in a statement yesterday.
Oxley said also that it will look to expanding into industrial and commercial property or into overseas markets and to maintain a land bank big enough to support a three- to five-year development pipeline.
Oxley's fully sold Suites@Katong, Parc Somme and Loft@Rangoon have achieved total sales of $77 million.
Its Viva Vista project is 99 per cent sold while RV Point is 84 per cent sold, with the value of both projects priced at a total of $193 million, the firm said.
Oxley's shares will begin trading next Wednesday.
esthert@sph.com.sg
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