Thursday, June 7, 2012

Oxley

Oxley: CEO Ching Chiat Kwong interviews with the Business Times, Says he does not see a need to do cash raising amid a steady stream of project income and access to bank finance, effectively dismissing market rumours of a potential cash call exercise. Adds, the co has sold most of its properties, while there is access to directors' loans to finance projects. It also partners other property players like Lian Beng, Orange Tee, in joint ventures to reduce risk. The co currently has some 14 residential projects and six industrial/commercial projects onstream, and launched its aggressive land-banking this year, including the en-bloc purchase of Hong Leong Gardens, McDonald's Place at King Albert Park, Seletar Gardens at Yio Chu Kang, and other properties in Joo Chiat, East Coast Road and elsewhere. Ching reckons total sales on Oxley's books now stand at ~$2b, with another $1.5b to be launched later this year. But notes the real kicker to the bottomline will only come in late 2013 and 2014, as its residential projects come to completion. The co will also lock in earnings from the industrial and commercial real estate on completion of TOP from 2014 - 17. New projects from recent landbankings and acquisitions will be launched later this year to keep fuelling earnings growth well into the next decade. When asked about his many "road-shows" in Europe and Asia, Ching says it is to boost the profile of his co, as the co applies to graduate to the mainboard from Catalist. In response to recent arguments against "shoebox apartments", he says, “Tell me what is more inhuman? Giving a young person an opportunity to buy an affordable first apartment in a good location, or making people cough up $1,700 psf for a 99-year leasehold residential unit in the suburbs or HDB townships?" Oxley trades at 3.9x P/B, and has net debt/equity of 443% as at Dec ’11.

No comments:

Post a Comment