Oxley unit to buy Yio Chu Kang property for $8.4m for redevelopment

AUG 31, 2017

Rachael Boon

A unit of Oxley Holdings is buying a 99-year leasehold property in Yio Chu Kang Road for $8.4 million with plans to develop it, said the company yesterday.

Its Oxley Garnet subsidiary has exercised options to buy six units at 208, Yio Chu Kang Road, which has a land area of about 1,313.3 sq mand is zoned for residential use.

"The group intends to redevelop the property", subject to approvals, Oxley said in a statement.

The move adds to the list of sales in a hot collective sale market.

It comes just after Monday's news of freehold condominiums Amber Park and Jervois Gardens being put up for collective sale, and last Friday's notice of the 78-unit Sun Rosier condominium off Bartley Road joining the fray.

The owners of the Yio Chu Kang units have been paid $126,000 with a further $294,000 going to their solicitors. The rest of the $8.4 million will be paid on Nov 23 or earlier, when the purchase is complete, subject to several conditions.

Oxley said the deal will be funded by internal resources and bank borrowings.

Analysts have noted in recent weeks that more people are likely to jump on the collective sale bandwagon in the next three to six months, and this is a huge draw for developers looking to replenish their land banks.

The purchase is not expected to have a material impact on the earnings per share or net tangible assets per share of the company for the current financial year ending 30 June 2018, said Oxley.