Pindan Group has formed a long-term financial partnership with international developer Oxley Holdings Limited (Oxley) as part of a restructure to deliver future growth in Australia.
Oxley is a Singapore publicly listed property developer (SGX-ST: 5UX) with operations in nine countries throughout Asia and Europe. Oxley will acquire 40% of Pindan Group Pty Ltd and has made a formal announcement to the SGX regarding its investment in the company.
The sale of a significant minority shareholding to Oxley is the next step in a corporate restructure for Pindan that has resulted in ownership of all its business units being consolidated under Pindan Group Pty Ltd.
The strategy driving the restructure is the Board’s desire to achieve its vision of becoming a national property group with the financial strength, experience and skills to deliver major projects across Australia. It will enable Pindan to grow its project portfolio and accelerate its transition from being a major Western Australian builder and developer to a national developer that also has a significant construction business on the west and east coasts of Australia.
Oxley’s investment in Pindan is approximately $72 million, comprising the acquisition of shares and equity commitments to assist in securing exciting new development projects. Oxley’s direct involvement in Pindan will deliver significant additional capital strength and direct access to major Asian investors and capital markets.
Pindan will continue to operate as an integrated property group providing a wide range of development, property, construction and maintenance services.
Director David Pringle said that Pindan was excited by the opportunity to formalise Oxley’s involvement in the company and the Board was delighted with the strong relationship that has been formed between the two groups during 2016.
“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,” Mr Pringle 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. The investment in Pindan provides Oxley with a direct interest in a growing company, with a proven track record, and many national development opportunities.”
Pindan’s investment and funds management arm, Pindan Capital, has 23 current development projects with sales revenue in excess of $1.2 billion. Pindan Capital has raised approximately $360 million in capital for investment into its projects.
Oxley senior directors Ching Chiat Kwong, Executive Chairman and CEO, and Eric Low See Ching, will join George Allingame and David Pringle on the Board of Pindan Group Pty Ltd.
Pindan’s executive management team, business unit management and staffing will remain unchanged and responsible for the company’s day-to-day operations.
Mr Ching Chiat Kwong commented, “Overseas projects have made important contributions to Oxley’s steady performance and growth. Through forging strong partnerships with reputable developers and business partners, Oxley has built up a business presence across nine geographical markets today, including the United Kingdom, Ireland, Cambodia, Malaysia, Indonesia and China, among others.”
“Australia is a huge property development market that has been on our radar screen to explore and venture into. Pindan is a leading, mature property and construction company with a strong management, in-depth local expertise and proven delivery record. We are confident that the partnership and synergy between Oxley and Pindan will lead to attractive business opportunities that benefit both parties.”
As of 30 September 2016, Oxley had unbilled contract value of S$2.7 billion, with S$0.9 billion from Singapore projects and S$1.8 billion from overseas projects.