Oxley Holdings

Revenues were above $1B in FY2020 & FY2021. YTD FY2024, revenues were $0.16B. Oxley is self-liquidating.

To be fair, $1.4B debts are financing property development, investment property and hotel. Investment property plus hotel valued at about $1.2B and subsidiaries development properties at about $1.1B and a couple of hundred million dollar of DP under JV and associates. Oxley is not repaying the $1.4B debts with the known collection as of date of result release from alone.

Usually, each business will be responsible for their own debts unless unable to. And their hotel might be in this situation.

Anyway, to be fair, Oxley can always sell IP and hotel. And it looks like the end is near.

~81% of Oxley's debt due within 1 year is secured, probably with their properties/land use rights? The old adage is "when you owe the banks 1 billion, you own them".

No reason why banks wouldn't roll over their debt - From AR23 (end June2023), 90% of their non current assets are in Spore, with little/zero exposure to "a country struggling with deflation". I haven't looked in detail at this non current assets' quality but all seems to be at fair values - There is probably no "hidden value" per say but no signs of significant degradation too.

Does Oxley has IP? Its hotels are on mgt contracts signed over to the brand owners to operate them. Is the Oxley name an IP to put on new developments?

Not saying this is a good investment or good company for OPMIs to invest in. But I believe Chairman Ching will still be celebrating with champagne in Christmas 2024.

Most of Oxley hospitality assets are its own, it lets the hotel brand act as the agent to manage it.

The main risk with Oxley is its flagship MYS serviced residence. Its struggling to sell its phase 2 luxury residence project due to the disappearance of China buyers from Malaysia. From what I have seen Oxley is now pricing the serviced residence units at 40-50% from phase 1 prices. The floor area of the residential project is only about 60% sold. So based on the marketting, it is likely Oxley will not achieve 100% of its expected revenue from KLCC development but only 80%>

https://www.tiktok.com/@goldenhomeadviso...hZWakyQzBq

The other overhang is Dublin Arch which is not marketted yet but the commercial and residential market in Ireland has gone under with sales going 20% lower than last year's due to Chinese seller offloading.

The risk going for Oxley now is its ability to sell its Irish and Malaysia properties.

Oxley recently tendered an exchange offer for its 6.9% notes due July2024 (remaining 195mil), with new notes due July2025 at 7.25% interest. However the response was not very good.

The 6.9% notes due July2024 first attracted ~85+70+50mil subscriptions (total 205mil) in 2021/2022. They were meant to replace 150mil of 5.7% notes due 2022, and so total subscription of 205mil back 2-3years ago, were more than enough to repay the 150mil due debt, abeit with 1.2% (6.9-5.7=1.2%) higher rates.

For current replacement offer, only 62/195 = 31% took the 1 year extension with 6.9%-->7.25% higher interest. With additional 26mil subscriptions, this meant 195-62-26=107mil is coming due in ~4months' time. Will Oxley be able to redeem them fully with existing resources? Or in the coming few months, offer another series of notes with rates>7.25% to entice new subscriptions?


The additional New Notes to be issued pursuant to the Additional New Issue will be fungible and shall consolidate into the same series as the New Notes to be issued pursuant to the Invitation (the “Series 006 Notes”). Accordingly, the aggregate principal amount of the Series 006 Notes to be issued will be S$88,000,000 (being S$62,000,000 in aggregate principal amount of New Notes to be issued in exchange for the Existing Notes plus S$26,000,000 in aggregate principal amount of additional New Notes to be issued pursuant to the Additional New Issue).
https://links.sgx.com/FileOpen/Pricing%2...eID=792920

Backed by property projects, rather than completed properties? haha... Should have brave souls willing to provide mezzanine loans.

Singapore builder Oxley seeks up to US$120 million private loan

OXLEY Holdings, a cash-strapped property developer in Singapore, is seeking a private credit loan of US$100 million to US$120 million partly to help repay a Singapore dollar bond due next month, said sources familiar with the matter.

The tenor of the loan would be two years, the sources added, asking not to be identified as the matter is private. The borrowing is set to be backed by Oxley’s two property projects in Kuala Lumpur and London, the sources said. The deal is not final and terms may change, the sources added.

https://www.businesstimes.com.sg/propert...ivate-loan

Not vested

https://links.sgx.com/1.0.0/corporate-an...1d4203b9ce

Hi Behappyalways,

This is not the first reminder. But would appreciate it if you could add in descriptions rather than just a link.

Moderator

(06-06-2024, 07:17 PM)weijian Wrote: Backed by property projects, rather than completed properties? haha... Should have brave souls willing to provide mezzanine loans.

Singapore builder Oxley seeks up to US$120 million private loan

OXLEY Holdings, a cash-strapped property developer in Singapore, is seeking a private credit loan of US$100 million to US$120 million partly to help repay a Singapore dollar bond due next month, said sources familiar with the matter.

The tenor of the loan would be two years, the sources added, asking not to be identified as the matter is private. The borrowing is set to be backed by Oxley’s two property projects in Kuala Lumpur and London, the sources said. The deal is not final and terms may change, the sources added.

https://www.businesstimes.com.sg/propert...ivate-loan

risk of default for oxley has risen a lot? Oxley has quite a lot of projects in Singapore . Any serious implications here?

Oxley has enough assets to cover liabilities, they own a freehold hotel which is supposedly able to fetch SGD 1.2 billion, provided Singapore valuers are not lying.

It's a loss making hotel segment which should have been let go to save the company a significant financing expenses

(17-06-2024, 10:15 AM)CY09 Wrote: Oxley has enough assets to cover liabilities, they own a freehold hotel which is supposedly able to fetch SGD 1.2 billion, provided Singapore valuers are not lying.

It's a loss making hotel segment which should have been let go to save the company a significant financing expenses

assuming fire sale, can hotel fetch the same price of $1.2b?