Brexit impact is manageable, assures Oxley
SINGAPORE-LISTED property developer Oxley Holdings yesterday commented on the implications Brexit will have on its British business.
For its London exposure, it has the Royal Wharf Project, a waterfront township development in east London; a 20 per cent stake in British property developer Galliard; and a plot of land at Deanston Wharf.
Oxley expects limited impact on currency conversion from the British pound to the Singapore dollar as it uses a natural hedge on currency fluctuation by having both the cost of construction and bank loans settled in British pound.
The cost of construction for the Royal Wharf Project is booked in British pound and the collection of buyers' deposits and follow-on payments are also in the same currency.
A significant portion of the bank loans pertaining to the Royal Wharf Project is also in British pound.
It added that the depreciation of the British pound is also expected to generate more purchasing demand in the British market. The group has received more inquiries from potential overseas buyers since the Brexit result was announced.
Oxley has decided to emphasise its sales and marketing efforts more in the Middle East and Asia markets.
There will also be an indirect benefit to business in Ireland. Oxley has an upcoming project in Dublin, expected to be launched in 2016-17. The site will be developed into a Grade A office and apartments.
"As an increasing number of financial institutions are considering setting up office in Dublin, the group's business outlook in Dublin is expected to improve further," Oxley said.
Executive chairman and chief executive Ching Chiat Kwong said: "Other than some exchange difference, we see the impact is overall minimum and manageable to Oxley. Our long-term growth plan in (Britain) will remain unchanged."
THE BUSINESS TIMES