Singapore-listed property developer Oxley Holdings has embarked on a mission to get a foothold in Australian property, acquiring 40 per cent of local development and construction group Pindan for $32 million.
Singapore-listed property developer Oxley Holdings has embarked on a mission to get a foothold in Australian property, acquiring 40 per cent of local development and construction group Pindan for $32 million.
The deal, announced today on the Singapore Stock Exchange, represents a major restructure for Pindan, which recently consolidated all of its building and development operations under the one entity, Pindan Group Pty Ltd.
Pindan was established in 1977 by founding directors George Allingame and David Pringle, with its construction arm ranked among the top 20 commercial builders in Australia and the top-ranked multi-unit builder in Western Australia.
The group's development arm, Pindan Capital, has 23 projects on its books with sales revenue of more than $1.2 billion.
Pindan said the rationale behind the transaction was clear – it would give it the financial strength needed to transition from being a major WA developer to become a national player.
Oxley’s investment would also provide direct access to Asian investors and capital markets, Pindan said.
Pindan director David Pringle said the company was excited to formalise Oxley’s involvement.
“Over 40 years, Pindan has achieved enormous growth and diversification, but we have made a strategic decision that the best way to realise our full potential in Australia is to have a major partner directly involved in the company’s ownership structure,” he said.
“Oxley has been interested in the Australian property sector for some time and has sought to make its entry into the market alongside a substantial and experienced partner.”
Oxley senior directors Ching Chiat Kwong and Eric Low See Ching will be added to the board of directors of Pindan Group, while its executive management team and staffing will remain unchanged.
Mr Ching said overseas projects had made a significant contribution to the growth of Oxley, which was incorporated in 2010 and has a portfolio of developments in Singapore, the UK, Cambodia, Malaysia, Ireland, Indonesia and China.
Its flagship office development, the 32-level Oxley Tower in Singapore, is expected to be complete by the end of the year, while last financial year, Oxley acquired a 20 per cent stake in UK development firm Galliard Group as it expanded its reach.
In FY2015-16, Oxley’s revenue was S$981 million ($926 million), which delivered a net profit of $S295 million ($278.6).
“Australia is a huge property development market that has been on our radar screen to explore and venture into,” said Mr Ching, who was ranked 50th of Forbes magazine’s 2015 richest people in Singapore list.
“Pindan is a leading, mature property and construction company with strong management, in-depth local expertise and a proven deliver record.
“We are confident that the partnership will lead to attractive business opportunities that benefit both parties.”
Pindan founding directors George Allingame (left) and David Pringle are excited about the potential of the partnership with Oxley Holdings.
