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Oxley signs lease deal for Dublin site

OXLEY Holdings has entered into an agreement for lease with Córas Iompair Éireann (CIE), allowing Oxley to develop a 1,963 hectare site in Dublin.

The site comprises part of the lands at Connolly Station, Dublin 1, Oxley said in a filing to the Singapore Exchange on Tuesday.

The term of the agreement is seven years and must be exercised by Oxley by the end of the fifth year of the term.

If Oxley exercises the entitlement, it will develop the site in one or more phases. Upon the completion of the works in each phase, CIE will grant Oxley a 300-year ground lease, under which it may sublet the entire or part of the premises to third parties.

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Oxley will pay CIE an annual licence fee of two million euros (S$3.18 million) for the first six years and 3.05 million euros for the seventh year.

During the term of the ground lease, the company will pay to CIE an annual rent of either 3.05 million euros or 10 per cent of the gross income received by Oxley and the management company - whichever is higher.

"The costs to develop the site will be funded by the group's internal resources and bank borrowings," said Oxley.