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Covid-19 could add up to six weeks to construction works on Oxley's projects

OXLEY Holdings said that the completion of construction works in its properties is expected to be delayed by four to six weeks because of the Covid-19 pandemic, with construction sites having ceased activities to varying degrees in Singapore and overseas.

In responses to shareholders ahead of its upcoming general meeting, Oxley said that the group had progressively restarted operations in June, and that construction activities at all its development sites had resumed.

The group's hotels have signed government contracts to provide accommodation to those served with stay-home notices and to serve as government quarantine facilities, said Oxley. It added that this is expected to extend until March 2021.

Together with cost-saving measures, the contracts have enabled the hotels to remain cash flow positive, it said. As the group has minimal commercial leasing portfolio, rental reliefs granted to tenants do not have any material impact on the group's financial performance, it added.

The group said that sales of the remaining units at Royal Wharf, a residential and commercial development in London completed in Q3, have stayed strong. It has not experienced any significant collection issues in respect of the sold units, and the incoming cash flow from the completed local and overseas projects will be retained by the group to meet its debt obligations.

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Looking ahead, the group said that it will stay the course in developing residential, commercial, industrial and hospitality projects in Singapore and overseas. It is on track to complete the development projects in Ireland and Cambodia within the next 12 months.

Meanwhile, the Addition, a 26-unit residential development in Potong Pasir in Singapore, achieved TOP (temporary occupation permit) in April 2020.

Oxley has launched 11 projects in the last 2.5 years. As at August 2020, 3,109 units or 79 per cent of the units in these projects had been sold; total sales secured amounted to S$3.5 billion. Sales have been completed on three projects, and the group estimates that the remaining eight projects will be fully sold within the next 12 months.

In Malaysia, construction at Oxley KLCC project is ongoing. Approximately 66 per cent of the launched residential apartments have been sold.

Oxley said that borrowings have reduced gradually since 2018. In addition, the group has begun the planning, design and site preparations for its new projects:

• Connolly Station, a railway station in Dublin, Ireland;

• Deanston Wharf, a residential/commercial development in London, and

• Mozac, a residential project in Ho Chi Minh City, Vietnam.

Construction works and sale launches are expected to commence next year, upon completion of this planning.

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