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Oxley unit disposes of stake in UK developer Galliard for £30m

PROPERTY developer Oxley Holdings on Friday said its wholly-owned subsidiary, Oxley Bright, has disposed of its entire 18.77 per cent stake in Galliard Group for some £30 million (S$52.9 million).

Galliard and its subsidiaries are principally engaged in property development and construction, hospitality and management, and oversee mixed-use, residential, hotel and commercial projects across London and southern England. 

In a bourse filing, Oxley Holdings named the purchaser as FREP 4 H1 but did not disclose further details, except that it is unrelated to the group, the company's directors or its controlling shareholders. 

The total price of £30 million was arrived at after taking into account current market conditions, the lack of liquidity of the shares of a private company, and future expansion plans of Galliard, which would require further capital contributions, Oxley said. 

No valuation was conducted for the shares, which were acquired for £50 million in 2015. 

Proceeds from the disposal, which have been fully paid to Oxley Bright, will be used to enhance the group's cash flow. 

Oxley Holdings said the sale is part of the group's plan to "streamline its portfolio, divest non-core assets and enhance its financial flexibility".

"In undertaking the disposal, the group has considered the limited cash flow returns to the group since the acquisition of the shares in 2015, the future expansion needs of the Galliard Group, and the outlook of the UK property market arising from Covid-19 and Brexit, which may impact the value of the existing land bank and future selling prices," Oxley Holdings said. 

Following the completion of the disposal, Galliard has ceased to be an associated company of the group. 

Oxley Holdings shares closed at S$0.26 on Thursday, up S$0.01 or 4 per cent.

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