Eric Low (left), deputy CEO of Oxley, and Ching Chiat Kwong, , executive chairman and CEO of Oxley, with the model of Oxley Towers KLCC (Photo: Samuel Isaac Chua/EdgeProp Singapore)
It has been seven years since property developer Oxley Holdings’ $2 billion buying binge in Singapore when it acquired nine plots, some of which were en bloc purchases in joint ventures with others. In 2018–2019, Oxley launched 3,800 new residential units with a gross development value (GDV) of about $5 billion.
Projects launched included the 1,052-unit Affinity at Serangoon, the 1,472-unit Riverfront Residences, and the Mayfair Collection (the 215-unit Mayfair Gardens and the 171-unit Mayfair Modern).
On Feb 8, Oxley announced in its 1HFY2024 (ended Dec 31, 2023) that all its Singapore development projects have received their temporary occupation permits and are 100% sold.
“While we see potential in the Singapore market, we are a bit cautious,” concedes Eric Low, deputy CEO of Oxley Holdings, in a recent interview with EdgeProp Singapore. “However, in the next six to 12 months, we will seriously look at engaging the market again.”
Aside from Singapore, Oxley ventured abroad over a decade ago. The developer is now in the UK, Ireland, Cambodia and Malaysia. In each of these markets, Oxley has been focused on completing and selling out its launched projects for the past few years, says Low.
The Royal Wharf waterfront development, with 3,385 apartments and townhouses, is entirely sold. Just a handful of the retail units are available (Picture: Oxley Holdings)
Oxley’s maiden purchase in London was Royal Wharf, a 40-acre (about 16.2ha) plot along the River Thames for GBP200 million in 2013. A joint development with Ballymore Group, Royal Wharf is a $2.97 billion, 3.9 million sq ft, freehold waterfront development. Completed in September 2020, it has 3,385 apartments and townhouses, 161,460 sq ft of office space, and 53,820 sq ft of retail and F&B space. The residences are entirely sold, and just a handful of the retail units are available.
“There are easily 10,000 people living in Royal Wharf today,” says Ching Chiat Kwong, executive chairman and CEO of Oxley. “There’s a Sainsbury’s supermarket, an Asian supermarket, Starbucks and Fuller’s The Windjammer pub.”
Other amenities include the Royal Wharf Primary School, a general practitioner, a dentist, a pharmacy, beauticians, restaurants and cafés. The development has over 59,202 sq ft of landscaping and 24 acres of parkland, with Lyle Park at one end and Thames Barrier Park at the other.
The 769-unit Riverscape, where 62% of its launched units have been sold as at end-December (Picture: Oxley Holdings)
Oxley and Ballymore are now developing the neighbouring GBP750 million ($1.1 billion) Riverscape, with 769 units spread across 10 blocks. The units are a mix of one- to three-bedroom homes, ranging from 549 to 1,214 sq ft. The developer intends to complete the project by the end of this year. Oxley’s 1HFY2024 results show that 62% of the launched units have been sold.
Read also: Retail units at Oxley Towers KLCC fully taken up; Trinity Wellness in Ampang is 99% sold
Low says the average price of units sold at Riverscape is over GBP700 psf. When combined, Riverscape and Royal Wharf have over 1km frontage along the River Thames. Units fronting the river will have prices above GBP800 psf. Oxley intends to showcase the project in Singapore later this year.
One of the attractions of Riverscape is its connectivity, especially with the opening of the Crossrail (Elizabeth Line) in 2022. Two Docklands Light Railway stations are located nearby: West Silverton and Ponton Dock. The Elizabeth Line station at Custom House is within a 10-minute walk of Riverscape. Residents can get to the City Centre within 12 to 15 minutes via the Elizabeth Line.
According to the Office of National Statistics, UK rents were up a record 9.2% m-o-m in March, while prices remained relatively flat. Royal Wharf has seen rents recover, too, according to Ching. He owns a 1,000 sq ft apartment there. It used to be leased at GBP600 per week. Today, it is over GBP1,000 a week, he says.
Home transactions in the UK rose for the seventh straight month in April, reversing almost two years of decline, according to property platform Zoopla. “We are confident we will be able to sell the units at Riverscape because the market dynamics in London are just right,” says Low. “Interest rates in the UK are coming down, and so are mortgage rates.”
Dublin Landings is a mixed-use development comprising 750,000 sq ft of office space across five tower blocks, as well as apartments, retail, leisure facilities and a hotel (Picture: Oxley Holdings website)
In 2014, Oxley also won the right to develop the one million sq ft Dublin Landings site in partnership with Ballymore. The EUR1.5 billion mixed-use development comprises 750,000 sq ft of office space across five tower blocks, as well as apartments, retail, leisure facilities and a hotel. The National Treasury Management Agency of Ireland and other government agencies are anchor tenants in the office blocks.
German real estate fund manager Patrizia purchased the first office tower on behalf of a pension fund in April 2018. Seven months later in November 2018, South Korean real estate investment trust JR AMC paid EUR106.5 million for one of the other office buildings.
Read also: Oxley Holdings’ Jewel by Oxley KLCC in Kuala Lumpur achieves 60% pre-sales
Another two office blocks at Dublin Landings were sold to the Central Bank of Ireland for EUR205 million in October 2019. Dublin’s largest landlord, Iput, acquired the last office tower at Dublin Landings in December 2019.
Meanwhile, US-based Greystar Capital Partners purchased the 268 apartments across two blocks for EUR175.5 million.
Before the divestment, Oxley held a 77.8% stake in the joint venture at Dublin Landings, while National Asset Management Agency had the balance of 22.2%, with Ballymore as the project manager. Of the GBP745.4 million in proceeds from the sale of the development, Oxley’s share is GBP591.5 million.
The master plan for the $1.4 billion, 1.19 million sq ft site shows a mixed-use development with homes, office buildings, shops, artists’ studios, restaurants, bars, a community club and Ireland’s first Standard Hotel (Source: website of OCSC/RDK Architects)
The next project in Dublin for Oxley is Dublin Arch (formerly Connolly Quarter), which sits directly on top of Connolly Station — the oldest train station in Dublin — and is close to bus and light rail lines.
The master plan for the $1.4 billion, 1.19 million sq ft site shows a mixed-use development with homes, office buildings, shops, artists’ studios, restaurants, bars, a community club and Ireland’s first Standard Hotel.
Oxley will have a 90% stake in the project, with Irish Rail holding the remaining 10% stake. Ballymore will be the project manager for the Dublin Arch development. “It will be Ireland’s most connected commercial hub,” Ballymore says.
Groundworks have started, and construction will begin next year. Given the scale of the project, it is expected to take five years to complete. Oxley’s Low estimates the GDV for Dublin Arch to be around EUR1.5 billion.
The Peak is a freehold, 55-storey mixed-use development in Cambodia with two residential towers with 1,014 units, a commercial tower with 250 office units and a 300-room Shangri-La Hotel, which will be completed soon (Photo: Oxley Holdings)
In Cambodia, Oxley has three projects in Phnom Penh: The Peak, The Palms and The Bridge, with a total GDV of about US$1 billion ($1.36 billion). All the residential units in Oxley’s Cambodian projects are sold, except for some retail units at The Palms and The Peak.
The Peak is a freehold, 55-storey, mixed-use development with two residential towers of 1,014 units, a commercial tower with 250 office units and a 300-room Shangri-La Hotel. The hotel is targeted for completion soon. The development has a five-storey retail podium that will be managed by Bluebell Group, Asia’s leading brand distributor.
The Palms is a freehold residential development with 206 luxury resort homes, a man-made beach, a clubhouse and over 60 facilities. The newly completed development is near the Mekong River.
The Bridge, a freehold, mixed residential and commercial project, was developed jointly with Cambodia-based Woodbridge Land. It is Oxley’s maiden project in Cambodia. The development has two 45-storey towers linked by sky bridges and a five-storey retail podium.
Ching was in Cambodia a week ago. “The crowd is back, and the airport is full,” he says. However, he adds that Cambodia’s current challenge is an oversupply in the housing market. Fortunately, Oxley’s residential units have been entirely sold.
Oxley intends to launch SO Sofitel Kuala Lumpur Residences and the final phase of residential units at Jewel Residences in Singapore in May (Picture: Oxley Holdings)
A decade ago, Oxley amassed a land bank with GDV of more than RM3.5 billion in Malaysia, primarily in Kuala Lumpur, Petaling Jaya and Medini in Iskandar Malaysia.
The new landmark in Kuala Lumpur is Oxley Towers KLCC, a freehold mixed-use development with three towers: a 30-storey office tower, a 49-storey tower with 213-room five-star hotel and 267-unit Jewel Residences, and a 78-storey SO Sofitel Hotel with 590-unit SO Sofitel Kuala Lumpur Residences atop a two-storey retail podium. Oxley Towers KLCC is developed in partnership with Malaysian developer Pavillion Group.
Last year, Alliance Bank Malaysia acquired the Grade-A office tower and four strata retail units for RM406 million ($116 million). As at end-March, 60% of the 267 residential units at Jewel Residences have been taken up.
The $90 million, 463-unit Trinity Wellnessa — a mass-market residential project in Ampang North developed jointly with Malaysian developer Trinity Group — is 99% sold to date. The development topped out on April 5 and is expected to be completed by June 2025, four months ahead of schedule. Next to Trinity Wellnessa is the upcoming Trinity Enlivea, another wellness-centric project by the joint-venture partners. The $150 million new 737-unit private condo is set to launch in 4Q2024.
Oxley is developing a freehold private condo with over 1,000 units in Section 16 of Petaling Jaya (Picture: Oxley Holdings)
Low says the residential developments in Ampang North are priced at about RM600,000 and cater to the local Malaysian market. Foreigners can only purchase property priced from RM1 million.
Oxley also has a development site in Section 16 of Petaling Jaya. The freehold, private condo with over 1,000 units is in a prestigious bungalow enclave. The area also has a big expatriate community of Koreans and Japanese, notes Ching. The developer is targeting to launch the project in Singapore sometime in 3Q2024.
Over a decade ago, Oxley purchased a development plot in Medini in Iskandar Malaysia, Johor. “We intend to develop, sell and complete it,” says Low. He believes institutional investors, such as real estate funds, would be interested when the project nears completion.
Meanwhile, Oxley intends to launch its Oxley Towers KLCC project in Singapore sometime in the middle of May. It will release the final phase of units at Jewel Residences and the luxury hotel-branded SO Sofitel Kuala Lumpur Residences. According to Ching, the timing for the launch is fitting, given the renewed interest in Malaysian property.