Oxley Holdings forms JV with BHP

Will develop land owned by BHP.

The Board of Directors of Oxley Holdings Limited announced that the Group’s wholly-owned subsidiary, Oxley Star Sdn. Bhd. (Oxley Star), has on 21 June 2013 entered into a joint venture agreement with Beverly Heights Properties Sdn Bhd (BHP), pursuant to which Oxley Star was granted the absolute, exclusive and irrevocable authority, power and right in, over and to the development of the land owned by BHP and held under Geran No. 62839 for Lot 3643 and Geran No. 44471 for Lot 2859, both of which are situated in Mukim 18, Daerah Timor Laut, Penang, Malaysia.

The Land has a freehold tenure and an aggregate area of approximately 119,876 square metres. Under the Agreement, Oxley Star shall carry out and complete the development on the Land through phased development, construction and building, inter alia, residential accommodation based on BHP’s proposed plans, which are subject to the approval of the relevant authorities.

Oxley Star will be entitled to all income generated from the Project including 70% of the gross total sales of the built-up saleable area of the Land. BHP will be entitled to 30% of the gross total sales of the built-up saleable area of the Land with a minimum entitlement of not less than RM500,000,000 and a maximum entitlement not exceeding RM900,000,000.

A sum of RM10,000,000 has been paid by Oxley Star to BHP and is treated as part payment towards the BHP Entitlement. The balance of the BHP Entitlement will be paid in a staggered schedule.

The Agreement is still conditional upon Oxley Star obtaining the approval from the relevant authorities to convert the Land (if any) to a category of land use suitable for the Project. Oxley Star will also have to carry out a complete search on the Land with the relevant authorities to enter, examine and inspect the Land, and to carry out all necessary surveys and tests (including soil tests) on the Land to confirm that Oxley Star can carry out the Project on the Land. Relevant authorities also have to give their approval for Oxley Star to deal with the Land and/or any interests therein as shall be required in law.