The funds may also assist in the development and marketing of a new launch condo project.
In a bid to navigate through its liquidity challenges, Oxley Holdings, a Singapore-based real estate developer, is actively seeking a substantial private loan ranging from US$100 million to US$120 million. This strategic financial move is primarily aimed at addressing the imminent repayment of a bond denominated in Singapore dollars, which is due for settlement in the upcoming month.
Confidential informants, who have requested anonymity due to the sensitive nature of the information, revealed that the proposed loan would span a period of two years. They further disclosed that the loan is expected to be secured by leveraging Oxley’s real estate assets located in Kuala Lumpur and London. However, it is important to note that the terms of the deal are still under negotiation and may be subject to adjustments.
The developer's intention is to allocate a portion of the loan proceeds towards the redemption of its outstanding 6.9% bond, which is scheduled to mature in July. This bond, initially issued in 2021, currently has a principal amount of S$133 million outstanding, as reported by Bloomberg.
As of the end of December last year, Oxley's financial statement reflected a cash balance of S$48.9 million, with total current liabilities amounting to a staggering S$1.4 billion, as per the records filed with the Singapore Exchange.
The property market in Singapore, which has managed to evade the economic slumps experienced by other global metropolises, is now experiencing a slowdown. This is attributed to the country's subdued economic performance coupled with a series of regulatory measures implemented by the government to temper the previously surging property prices.
Since its inception in 2010, Oxley Holdings has successfully completed over 40 development projects across various nations, including the UK and Ireland, as highlighted in its most recent annual report. The company's stock price has been hovering around 8.8 Singapore cents lately, which is close to the lowest value since its initial public offering back in 2010.
In a recent executive shuffle, Oxley Holdings announced the appointment of Chin Mei Ling as the new Chief Financial Officer, succeeding Leong Mei Kuan. This update was confirmed through an official statement issued to the Singapore Exchange.
Adapted from The Business Times
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