Oxley tipped to clinch Pei Fu Industrial Building

[reporter2]

Oxley tipped to clinch Pei Fu Industrial Building

BT understands that the mainboard-listed group will be paying S$76.25 million for the freehold property

Tue, Apr 24, 2018

Kalpana Rashiwala


OXLEY Holdings is expected to clinch Pei Fu Industrial Building off Upper Paya Lebar Road in what could be the first collective sale of an industrial property to be awarded this year.

The Business Times understands that the mainboard-listed group will be paying S$76.25 million for the freehold property in New Industrial Road.

The expected transaction price, which surpasses the reserve price of S$75 million, works out to S$489 per square foot per plot ratio (psf ppr), based on the proposed gross floor area (GFA) of 155,864 square feet (sq ft).

This unit land rate does not include a development charge that may be payable to the state, as the development baseline has yet to be ascertained, BT understands.

The deal is being brokered by William Gan Realty.

The above GFA figure is based on the 2.5 plot ratio specified for the Business 1-zoned site under the Urban Redevelopment Authority's Master Plan 2014.

Pei Fu Industrial Building has a land area of 62,346 sq ft. The six-storey flatted factory, completed around the early 1980s, was developed by Tay Eu Chee Realty Pte Ltd, which owns a substantial portion of the 30 strata units in it.

To date, owners controlling around 88.5 per cent of both strata area and share value in the development have given their nod to the collective sale.

The strata units range from 1,690 sq ft to 5,403 sq ft in size.

The last major collective sale of an industrial building was that of Citmac near Tai Seng MRT station. The freehold property was awarded last year to a Chinese developer at S$430.1 million or S$1,047 psf ppr, inclusive of an estimated S$82 million development charge.

BT reported earlier that the Chinese developer is linked to the Zhao family of China, which bought Cityvibe near Clementi MRT station in 2016.

[reporter2]

Pei Fu building in S$76.25m collective sale

SLB Development and subsidiary Oxley Kyanite bag the freehold property

Wed, Apr 25, 2018

Wong Kai Yi


NEWLY-LISTED SLB Development announced on Tuesday that subsidiary Oxley Kyanite has exercised the option to acquire freehold Pei Fu Industrial Building for a total of S$76.25 million.

The transaction price, reported earlier by The Business Times, surpasses the reserve price of S$75 million, and works out to S$489 per square foot per plot ratio (psf ppr), based on the proposed gross floor area (GFA) of 155,864 square feet (sq ft). This unit land rate does not include a development charge that may be payable to the State, as the development baseline has yet to be ascertained.

The acquisition - brokered by William Gan Realty - was undertaken by Oxley Kyanite Pte Ltd, in which SLB has an indirect 51 per cent interest with mainboard-listed Oxley Holdings owning the remaining 49 per cent share.

The six-storey flatted factory, located at 23 New Industrial Road, has a land area of around 62,346 sq ft and was completed around the early 1980s. It was developed by Tay Eu Chee Realty Pte Ltd, which owns a substantial portion of the 30 strata units in it.

SLB, the property spin-off of construction company Lian Beng, said that it intends to redevelop the site, subject to obtaining all necessary approvals from the relevant authorities, and will fund the purchase using internal resources and external borrowings.

The Catalist-listed company has already paid a deposit of S$3.81 million, with a similar sum payable upon consent of the sale by the Strata Titles Boards or the High Court, and the remainder on legal completion of the purchase.

Owners which control some 88.5 per cent of both strata area and share value in the development have given their nod to the collective sale, BT reported earlier.

If Oxley Kyanite fails to obtain the requisite consent, approval and clearance for the sale, the vendors shall be entitled to rescind the sale and purchase and recover any damages suffered, Oxley noted.

SLB said that the acquisition is not expected to have any material impact on the group's net tangible assets per share and earnings per share for the current financial year ended May 31, 2018. As of Tuesday's close, SLB shares were trading at S$0.235 apiece, down 1 Singapore cent or four per cent, while Oxley's counter was up at S$0.49, up half a Singapore cent or 1 per cent.