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Oxley to acquire 40% stake in Australian developer for A$32m

OXLEY Holdings will invest A$32 million (S$33 million) for a 40 per cent stake in an Australian property and construction company.

Announcing this in a filing to Singapore Exchange before market opened on Tuesday, the mainboard-listed real estate developer said it intends to purchase a 40 per cent stake in Pindan Group, a four-decade-old privately owned property and construction company based in Western Australia.

Comprising acquisition of shares, the investment is expected to help Pindan strengthen its capital position and secure new development projects, said Oxley.

This will enable Pindan to grow its project portfolio and accelerate its transition from being a major Western Australian builder to a national developer that delivers major projects across Australia, Oxley said.

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The investment is also part of Oxley's strategy of foraying into new markets by investing in local companies in foreign markets. Examples include The Royal Wharf project in London, a waterfront township development of 363,000 square metres with 3,400 homes.

Said Ching Chiat Kwong, Oxley's executive chairman and chief executive officer: "Australia is a huge property development market that has been on our radar screen for us to explore and venture into."

As at Sept 30, 2016, Oxley had an unbilled contract value of S$2.7 billion, with S$0.9 billion from Singapore projects and S$1.8 billion from overseas projects.

Oxley's counter last traded on Monday at S$0.435, 0.5 Singapore cent lower than from the previous trading day.