Oxley divests Sydney land parcels for S$96.3m, boosts cashflow

OXLEY Holdings 5UX has divested its land parcels located in Sydney, Australia for S$96.3 million, above its book value of S$60 million as at June 30, 2020.

The property developer expects the transaction to contribute positively to its cashflow as there is no outstanding bank loan secured by the asset, it said in a bourse filing on Tuesday.

The freehold site, 173-177 Walker Street, is located in North Sydney central business district, one of Australia's largest commercial centres, Oxley said.

The value of the land appreciated in 2018 when approval to increase its maximum height, floor and space ratio as well as other parameters was granted. The group, together with the owner of 179 Walker Street, had submitted a planning proposal to the North Sydney Council in 2017.

The buyer of 173-177 Walker Street is Cbus Property, which partnered Sydney-based real estate developer Galileo Group.

Oxley expects the deal to have a material impact on its expected earnings per share for the financial year ending June 30, 2022. Executive chairman and chief executive Ching Chiat Kwong said the move will unlock shareholder value and is in the best interests of shareholders.

Shares of mainboard-listed Oxley closed flat at S$0.20 on Tuesday.