The firm plans to redevelop the 89,620 sq ft site.
Oxley Holdings is acquiring a freehold residential property known as 231 Pasir Panjang Road for $121 million.
This comes after its wholly-owned subsidiary, Oxley Amber, entered into an option to purchase the property with Casuarina Properties on 11 July.
The group plans to redevelop the site, which has a land area of about 89,620 sq ft, subject to approval from the relevant authorities.
In an SGX filing, Oxley revealed that the $121 million purchase price was “arrived at on a willing buyer-willing seller basis after taking into account current market prices of properties in the surrounding area and the company‘s assessment of the property’s redevelopment potential”.
It noted that the proposed purchase will be funded by bank borrowings and internal resources.
However, it clarified that there is no certainty as to the date when the option will be exercised, saying that the “company will make a further announcement in due course”.
Oxley does not expect the proposed acquisition to materially affect its earnings per share or net tangible assets per share for the current financial year ending 30 June 2018.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
