Oxley

Oxley: to engage in its first hotel development, after its $318m purchase of The Pines club on Stevens Road, which sits on a land area of 18.5k sm. The developer has plans for a new 735 room hotel housed in two 8-storey blocks, as well as a couple of 2-storey commercial buildings. Oxley will convene an EGM to seek sh/h approval for the proposed devt, which has been given provisional approval by the URA. Oxley says the purchase would be funded by internal resources, bank borrowings as well as $100m in 6% guaranteed bonds due 2015. The stock trades at 34.9x P/E, 5.1x P/B, and has net gearing of 445%.