Oxley Holdings to sell Japan property for US$60m

OXLEY Holdings Limited said on Monday that it has accepted an unsolicited offer for Chiba Port Square located in Chiba Prefecture, Japan for US$60 million.

A memorandum of understanding (MOU) was entered into by the group on Dec 25 with Greenland Hong Kong Investment Group and Japanese tax-free store chain operator LAOX Co Ltd.

Under the pact, Oxley will sell to the duo its interests in Godo Kaisha Oxley Chiba (GKOC), which holds the beneficiary interest in the property and the loan that was granted to GKOC.

The purchase price of US$60 million is inclusive of consumption tax, provided that payment be made in Japanese yen. The sale price was negotiated based on the prevailing market price of properties surrounding Chiba Port Square.

Under the terms of the MOU, the buyers shall complete their due diligence by Sunday, and if the results are in order, the parties shall enter into a definitive sale agreement no later than Jan 15, 2016.

The sale is expected to have a positive impact on Oxley's earnings per share and net tangible assets per share for the current financial year ending June 30, 2016, Oxley said.