Oxley Holdings has completed the divestment of land parcels at 173-177 Walker Street, North Sydney, Australia, for gross proceeds of around S$96.3 million, the Singapore-listed property developer said in a filing to SGX late Tuesday.
“The Covid-19 pandemic has brought about challenges to the global real estate and construction industries. Nevertheless, the group continues to achieve profitable deals across different continents. This is a testimony of the management’s ability to identify opportunities,” Ching Chiat Kwong, executive chairman and CEO of Oxley, said in the statement.
“The sale of the land parcels in Sydney generates material positive cashflow for the group, which strengthens our cash position and balance sheet. This will unlock shareholder value, and is in the best interests of the shareholders,” Ching said.
At end-June, Oxley had announced the deal without disclosing the property’s location or the buyer.
On Tuesday, Oxley said sites were sold to Cbus Property, which tied up with Sydney-based real estate developer Galileo Group.
The land parcels are located in North Sydney central business district (CDB), one of Australia’s largest commercial centers, Oxley said.
Oxley said in 2017, together with the owner of 179 Walker Street, it had submitted a planning proposal to North Sydney Council to increase the maximum height, floor space ratio and other parameters for the land. The proposal was approved in 2018, causing the land to appreciate, Oxley said, noting the property had a book value of around S$60 million at end-June 2020.
There is no outstanding bank loan secured by the asset and the entire net proceeds will contribute positively to cashflow, Oxley said, adding this would have a material impact on expected earnings per share for the financial year ending 30 June 2022.