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Oxley unit in S$38m property buy from 'interested parties'

OXLEY Amethyst Pte Ltd, a wholly owned subsidiary of Oxley Holdings has exercised the option to purchase a freehold property along Balestier Road for S$38 million from Owen Pte Ltd, in which the former's chief executive is a significant shareholder.

Oxley said after Tuesday's trading close that the freehold property occupies 1,118.4 sq m in total land area.

It is zoned residential with commercial on the first storey at a gross plot ratio of 3.0.

Oxley said that a sum of S$380,000 has been paid upon its subsidiary being granted the option. Another S$1.52 million has been paid upon the exercise of the option.

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The remaining balance of the purchase consideration will be paid on completion of the transaction within eight weeks from the exercise of the option.

The shareholders of Owen are Oxley's executive chairman and CEO, Ching Chiat Kwong, deputy CEO Low See Ching and the listed company's substantial shareholder, Tee Wee Sien. These three parties hold 47.5 per cent, 42.5 per cent and 10 per cent, respectively, of Owen's issued share capital.

Oxley qualified however that shareholders' approval is not required for this property purchase which is priced at about 3.5 per cent of the group's latest audited net tangible assets as at June 30.

The company added that the purchase will allow it to undertake a larger development of greater value by amalgamating this new property with No 3 Tessensohn Road and an adjoining strip of state land.

It said that the audit committee, having reviewed the terms of the deal, holds the view that the purchase is based on normal commercial terms and not prejudicial to the interests of the company and its minority shareholders.