Oxley Holdings unit divests 30% interest in luxury hotel, proceeds to improve cash flow ‘significantly’
Oxley Rising has separately agreed to sell a luxury hotel in Kuala Lumpur for RM250 million (S$77.2 million) to Artisan Hospitality
OXLEY Holdings has entered into an agreement to divest a 30 per cent stake in a to-be-built luxury hotel in Malaysia, with the sales proceeds expected to “significantly” improve its cash flow.
The property player said in a regulatory filing on Tuesday (Oct 1) that its subsidiary Oxley Rising has inked an agreement to contribute 70 per cent of the issued share capital of Artisan Hospitality, with the remaining 30 per cent to come from Kindway Express.
Oxley Rising has separately agreed to sell for RM250 million (S$77.2 million) to Artisan Hospitality a luxury hotel made up of 14 storeys of hotel rooms and two storeys of hotel facilities within the freehold integrated development in Kuala Lumpur called Oxley Towers KLCC.
The hotel, which will have a floor area of approximately 24,284 square metres and is expected to be operational under the Langham brand before Dec 31, 2027, is one of the two hotels to be developed as part of the Oxley Towers KLCC.
Oxley Rising will be appointed by Artisan Hospitality to be in charge of the design, execution, completion and delivery of the architectural works, mechanical and electrical works and fit-out works for the hotel.
Oxley Rising will be paid not exceeding RM200 million for the project costs.
However, Oxley Rising will only take in 30 per cent of the sales proceeds of the hotel and project costs, with the remaining 70 per cent to be set off against its contribution to the issued share capital of Artisan Hospitality.
Oxley Holdings’ sale of the 30 per cent stake in the luxury hotel is not expected to have a material impact on its earnings per share or net tangible assets per share for the financial year to June 2025, the property firm’s chief executive Ching Chiat Kwong said in the filing.
Oxley Holdings shares slid to S$0.08 at market close on Tuesday, S$0.002 or 2.4 per cent lower, before this announcement.
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