Oxley Holdings could bag $2.3b from overseas contracts

Contracts will be progressively recognised in the UK, Cambodia, and Indonesia.

Oxley Holdings could bag $2.3b earnings from unbilled overseas contracts that are yet to be recognised.

UOB Kay Hian said that Oxley’s UK-based Royal Wharf project, which is selling at price point of $1,073.31-$1,252.44 (£600-£700) psf, is targeted at the mass market segment.

The low drop-out rates at its Royal Wharf project is attributable to Oxley’s sales strategy of stepping up prices by about $89.44 (£50) psf in every selling phase.

In Cambodia, The Peak is about half-sold, with one of the highest psf sold in the country. The Bridge is also nearly sold out, with hand-over targeted in January to February 2018.

Oxley is also bullish about Indonesian projects, with plans to expand to other cities like Surabaya. In Batam, 337 of its 600 units in Oxley Convention City were sold to all Indonesian buyers, due to the strata title issue.

UOB Kay Hian analyst Vikrant Pandey commented, "The buying interest has also been spurred by infrastructure developments (ie widened roads, upgraded shops) over the past year in Batam, due to the island coming under federal control."

Moreover, Oxley's Ireland project, Dublin Landings, is likely to contribute to the next quarter's revenue and profits. Dublin Landings consists of 65,000 sqm of Grade-A office and retail space as well as 273 residential apartments. It comprises five blocks, one of which will be rented to the National Treasury Management Agency, whilst another has already solicited buying interest from six funds.