Oxley Holdings Limited: 2025 AGM – Detailed Investor Update

Executive Summary

Oxley Holdings Limited held its Annual General Meeting (AGM) on 27 October 2025, providing shareholders with a comprehensive update on its financial performance, outlook, and strategic direction. The meeting addressed several key issues, including bond repayments, asset divestments, ongoing projects, and future plans. All resolutions were passed with a strong majority, and the company emphasized a renewed focus on mature markets, cash generation, and prudent financial management.

Key Points from the AGM

• Successful Bond Repayment: Oxley has fully repaid all outstanding bonds as of July 2025, marking a significant turning point after a challenging period caused by the COVID-19 pandemic. This debt repayment removes a major financial overhang and could positively influence investor sentiment and share price.
• Asset Divestment Strategy: The company will now focus on divesting fixed assets, including industrial buildings, commercial units, and hotels, to unlock cash for new development projects, particularly in Singapore, London, and Ireland.
• Core Markets: Oxley’s future business will concentrate on mature markets: Singapore, London, and Ireland. Projects in Cambodia and Malaysia are being completed or are at advanced sales stages.
• Project Updates:
  • Cambodia: Most projects completed; retail units at The Bridge are being offered for swap with serviced apartments due to drastic changes in Cambodia’s tourism and retail environment.
  • Malaysia: Oxley Towers KLCC has obtained its completion certificate, and handover of residential units is underway. SO Sofitel hotel is scheduled to open in December 2026, and Langham hotel in 2027. The Petaling Jaya project is slated for launch in Q1 2026.
  • London: Royal Wharf is nearly fully sold except for some office units. Over 700 units at Riverscape have been sold, with full sell-out expected by Q1 2026.
  • Ireland: Groundwork for Dublin Arch is complete, awaiting government approval for residential construction to house expatriates involved in infrastructure projects.
  • China (Gaobeidian): Over 2,000 units built, about 1,000 sold. No further development obligations; company will sell remaining units at the right price.
• Hotels and Other Assets: All assets, including Mercure and Novotel hotels in Singapore, are open for sale at the right price. The company is actively seeking buyers for these assets to facilitate capital recycling.
• Financial Position: Net tangible asset (NTA) value stands at approximately S\$800 million, a significant increase from S\$100 million at IPO. The company currently has only secured borrowings, and gearing remains a concern. All loans are secured against assets, with a loan margin of about 55% of asset value.
• Refinancing and Interest Rates: The company’s loans are mostly floating rate. Management expects savings in finance cost as loans are refinanced at lower rates starting from end-October 2025.
• Capital Requirements: Upcoming capital needs include EUR 100 million for Dublin Arch’s first phase, and MYR 400 million to fit out Oxley Towers KLCC hotels, to be funded by proceeds from unit sales.
• Shareholder Mandates: All proposed resolutions—including authority to issue shares, scrip dividend scheme, renewal of interested person transaction mandate, and share buyback mandate—were passed with overwhelming support.
• Personal Investments by Chairman: Chairman Mr. Ching Chiat Kwong clarified that his personal investments in co-living and serviced apartments are separate from Oxley Holdings business; the Board is kept informed.

Important Shareholder Considerations

• Debt Overhang Cleared: The full repayment of bonds is a major milestone. This could be price sensitive, removing bankruptcy risk and opening new strategic opportunities.
• Active Asset Sales: Oxley is committed to divesting assets, which could result in significant cash inflows and further deleveraging. Shareholders should expect possible announcements regarding key asset sales (hotels, commercial units, land), which could impact share price.
• Shift to Core Markets: The strategic focus on Singapore, London, and Ireland is a pivot from previous international expansion. This may lead to improved returns and lower risk.
• Project Completions and Sales: Major projects in Malaysia and London nearing completion or full sale. The completion of Oxley Towers KLCC and ongoing sales in Riverscape and Dublin could provide material profits and cash flow.
• Potential for Further Gearing Reduction: CFO emphasized the need to continue asset divestment to further reduce gearing, which will be crucial for financial health and future growth.
• Dividend Policy: Renewal of the scrip dividend scheme means shareholders may be offered shares in lieu of cash dividends, potentially impacting dividend yields and share liquidity.
• Market Capitalisation vs. NTA: Despite substantial growth in NTA, the market capitalisation is below IPO levels, highlighting a possible value opportunity if management executes its plans successfully.

Potential Share Price Moving Factors

• Major Asset Sales: Any deal to sell prime hotels or commercial assets could substantially boost cash holdings and reduce debt, leading to a re-rating of the shares.
• Successful Project Completions: Handovers and sales of remaining units in key developments (Oxley Towers KLCC, Riverscape, Dublin Arch) will drive revenue and profit recognition.
• Interest Rate Trends: Lower finance costs from loan refinancing may improve net profit margins, providing upside for shareholders.
• Strategic Execution: Management’s ability to execute its divestment and development plans will be closely watched by the market; any delay or failure could dampen sentiment, while successful execution could drive share price higher.
• Regulatory Risks: Management expressed caution about regulatory changes, particularly in Malaysia and China, which could affect asset values and development plans.

Other Noteworthy Insights

• Share Buyback Mandate: Renewal of up to 5% of issued shares under the buyback mandate, providing flexibility for capital management.
• Investor Communications: Management committed to providing regular updates via the corporate website, but cautioned that projects will be undertaken only within prudent financial limits.

Investor Outlook

Oxley Holdings Limited is at a strategic inflection point. With its debt issues resolved and a clear plan to unlock value through asset sales and a renewed focus on core markets, the company appears poised for a turnaround. However, execution risks remain, and shareholders should monitor progress closely, especially regarding major sales, project completions, and the refinancing of loans.

Disclaimer

This article is for informational purposes only. It does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own analysis and consult with professional advisers before making investment decisions. The information in this article is based on publicly available data from Oxley Holdings Limited’s 2025 AGM and may be subject to change.

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