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Oxley: Multi-stage handovers are common; official go-ahead given for this for Cambodia project
MULTI-STAGE handovers for mixed developments are common in Cambodia and Singapore, and Oxley Holdings's subsidiary adopted the process in August for its project called The Peak with regulatory permission, the property developer said in a clarification announcement filed on the Singapore Exchange website on Friday night.
Oxley issued the clarification in response to an article published on Friday by The Business Times (BT), which had reported buyers' concerns about the developer's lack of transparency and its financial position.
Oxley said the retail podium in the mixed-use development in Phnom Penh has been completed on schedule, with the residential and office components to be completed in early 2021. Its subsidiary Oxley Gem (Cambodia) (OXG) started handing over the indoor retail units on Aug 14, after it received permission to do so on Aug 10 from Cambodia's general department of construction in the Ministry of Land Management, Urban Planning and Construction.
Handing over the indoor retail units will enable OXG to conduct the alteration and reconfiguration work required by the appointed retail mall manager, so that the manager can proceed with leasing and fitting-out activities to ensure the mall can commence operations in Q2 2021, Oxley said.
It said it had also adopted a multi-stage handover process for its previous landmark project The Bridge in Cambodia with the same joint venture partner, Worldbridgeland (Cambodia).
Oxley said it works closely with its professional advisers to ensure that all its business activities are conducted in accordance with the laws in Cambodia and Singapore.
It added that the payments collected by OXG are retained for the payment of construction and related costs to see the project to full completion. OXG's finances are wholly managed by its management team and overseen by OXG's chairman, separately from Oxley Holdings' operations.
OXG's chairman is also the chairman of Worldbridgeland.
BT reported on Friday that some buyers of retail units in The Peak have banded together to withhold completing payment, as video footage and photographs appear to show the development is still incomplete.
They are also worried that Oxley is asking for the buyers' final payments earlier than the Dec 31 delivery date stated in their sale-and-purchase agreements because it needs the money to boost cash flow.
Oxley shares closed flat at S$0.22 on Friday.