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Oxley Holdings sells Dublin office development for 115m euros

MAINBOARD-LISTED developer Oxley Holdings is selling an office block in Dublin for 115 million euros (S$173.6 million) to Irish commercial property fund Iput, the board said on Monday.

Oxley's subsidiary, Oxley Docklands Quay Two, will get 77.8 per cent of the sale price for the 297-year leasehold interest in No 3 Dublin Landings, which is part of the mixed-use Dublin Landings in the Irish capital that the group had developed. The sale is expected to be completed by end-2019.

Oxley noted that the project's other four commercial buildings have been sold, as have the 298 apartments, which are being delivered progressively from November 2019 to June 2020.

The company said in a bourse filing that the price tag for No 3 Dublin Landings "was comparable" to a market valuation that it had commissioned in August.

The sale proceeds will contribute positively to the group's cash flow, but the transaction is not expected to have a material impact on its earnings or net tangible assets per share for the year to June 30, 2020, the board added.

Ching Chiat Kwong, Oxley's chairman and chief executive, said in a statement that "the completion of the Dublin Landings project marks a milestone in Oxley's foray into Europe".

Besides Ireland, the group also operates in the United Kingdom and nine other markets, with its next Irish project slated to be a one million square foot mixed-use development - comprising homes, as well as hotel, office and retail space - at Connolly Station in Dublin.

Oxley shares closed up S$0.01 or 2.86 per cent to S$0.36 on Monday before the announcement.