Oxley / Lian Beng

Oxley / Lian Beng: Oxley will purchase Hougang Plaza for $119.1m (see above post on CMT). The property is a 3-storey neighborhood shopping mall located in Hougang Central, with a NLA of ~75.4k sf and a land area of ~57k sf. The property has a leasehold tenure of 99yrs wef Mar 1991. Oxley and Lian Beng have proposed to enter into a 50/50 JV to redevelop Hougang Plaza. Funding will be by internal resources and bank borrowings. Such a move comes on the back of the successful sales launch of Katong Regency (formerly Lion City Hotel), which is mixed devt comprising retail and residential (one quarter are shoe box units). Oxley trades at 19x fwd P/E, 4.2x P/B. Lian Beng trades at 3.9x fwd P/E, 0.94x P/B.