Oxley Holdings

Oxley Holdings: Continues agressive overseas expansion one year after government intervention on shoebox apartments. Oxley acquired seven properties, known as Royal Wharf located in London's Royal Docks, for an aggregate £200m from Clearstorm Limited, Heracles Limited and East London Haulage Limited. The properties are located at adjacent land parcels with a total gross effective area of 363,000 sqm, which have a residential-led mixed use development along 500m of River Thames. The group intends to develop the properties into more than 3,000 residential units and a variety of commercial, retail, leisure and educational facilities, and is believed to be the largest London development opportunity since Battersea Power Station in 2012. Besides London, Oxley had been active in Malaysia, Cambodia and China as well. Investors should be mindful of its highly geared balance sheet with net gearing of 5.8x that the group reported for its FYJun13 (post-dividends). Oxley trades at 4.7x P/B based on its current price.