SINGAPORE - Property developer Oxley Holdings, with a business presence in nine markets, has announced that it intends to acquire a 40 per cent stake in Australia's Pindan Group, a leading property and construction company.
Pindan, established in 1977, is a privately-owned property and construction company based in Western Australia.
It has annual turnover in excess of A$500 million with more than A$1 billion work on hand ( 20 to 25 per cent of which are Pindan developments and the rest are contracts with other developers and State, Federal and Local Governments). It has also recently expanded to other states in Australia, including New South Wales and Queensland.
In a statement to the Singapore Exchange on Tuesday, Oxley said it will make an investment of A$32 million (S$34 million) in Pindan, comprising the acquisition of shares - funds tha t are expected to assist in securing exciting new development projects.
Mr Ching Chiat Kwong, executive chairman and chief executive, and Mr. Eric Low See Ching, executive director and deputy chief executive of Oxley, will join the board of Pindan Group.
Oxley's involvement in Pindan will enhance Pindan's capital strength.
The combination of Oxley's expertise in property development, sales and marketing, and Pindan's experience and local knowledge, 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.
It has been a result-proven strategy for Oxley to partner with local companies overseas as it ventures into new markets.
Typical examples include The Royal Wharf project, the waterfront township development of 363,000 sq m with 3,400 homes, in London, which has started handing over completed units to buyers and contributing a steady revenue inflow to the group.
In Ireland, Oxley launched its first development project, Dublin Landings, in October 2016. Together with the local partner, the site will be developed into the largest mixed-use development in Dublin's business district, containing 700,000 sq ft of flexible Grade A office and retail space, and 273 luxury residential apartments.
As of Sept 30, 2016, Oxley had unbilled contract value of S$2.7 billion, with S$0.9 billion from Singapore projects and S$1.8 billion from overseas projects.
Mr Ching Chiat Kwong said: "Overseas projects have made important contributions to Oxley's steady performance and growth. Through forging strong partnerships with reputable developers and business partners, Oxley has built up a business presence across nine geographical markets today, including the United Kingdom, Ireland, Cambodia, Malaysia, Indonesia and China."
He added: "Australia is a huge property development market that has been on our radar screen for us to explore and venture into. Pindan is a leading, mature property and construction company with a strong management, in-depth local expertise and proven delivery record. We are confident that the partnership and synergy between Oxley and Pindan will lead to attractive business opportunities that benefit both parties."