Oxley Holdings has secured " a sales arrangement" for 100 units of SO/ Residences, KLCC, an integrated development, for $67 million.

 

With this sale, overall residential sales for Oxley' s KLCC development has increased to 75%.

 

Earlier this year, the construction for the office tower was completed and handed over to Alliance Bank, the new owner of the office tower.

 

The retail portion within the development has been fully sold and will be managed by Pavilion Group.

 

The development will also include SO/ Kuala Lumpur and Langham hotels.

 

&ldquo SO/ Residences, in particular, has resonated with discerning buyers who value design, lifestyle and investment potential," says executive chairman and CEO Ching Chiat Kwong.

 

 

Oxley Holdings says Artisan Hospitality, a 70%-owned subsidiary of the group, has entered into a hotel management agreement with Langham Hospitality Group (LHG) for the management of The Langham, Kuala Lumpur. 

 

According to the group, the partnership marks a significant milestone in enhancing the group&rsquo s hotel portfolio. 

 

Under the agreement, LHG is set to assume management responsibilities for the hotel. The group adds that the hotel is the second Southeast Asia hotel, as announced by LHG this year, and is well positioned to be part of LHG&rsquo s portfolio in the region as their key source of growth.

 

The hotel, which is located in the second tallest tower within the Oxley Towers KLCC project in Malaysia, comprises 198 guest rooms and suites. 

 

The group says the partnership &ldquo signifies a shared vision for growth and excellence&rdquo in operating luxury hotels within Malaysia&rdquo . Both Oxley and LHG are committed to fostering a successful and sustainable partnership, it adds. 

 

Bob van der Oord, CEO of LHG, says: &ldquo We look forward to bringing our flagship brand to Kuala Lumpur, a gateway city in a thriving part of the world that is also home to a notably robust travel market. The Langham, Kuala Lumpur will be a telling symbol of our vision to craft iconic, world-class hotels in Southeast Asia and beyond&rdquo

 

Oxley Holdings says that its wholly-owned subsidiary, Oxley Rising Sdn. Bhd. (ORSB), has entered into a shareholders&rsquo agreement with Kindway Express Limited (KEL) and Artisan Hospitality Sdn. Bhd. (AHSB). Under the terms of the agreement, ORSB and KEL will invest in the issued share capital of AHSB with ownership stakes of 70% and 30%, respectively.

 

Under the shareholders&rsquo agreement, ORSB and AHSB are expected to enter into several agreements within 14 business days, including a sale and purchase agreement and a project agreement. 

 

These agreements comprise the sale of 16 storeys within Tower 2 (Menara B) of Oxley Towers KLCC, which will house a luxury hotel comprising 14 floors of rooms and two floors of facilities.

 

The purchase consideration for the luxury hotel stands at RM250 million ($7.7 million), which is expected to be paid by AHSB within 10 business days from the receipt of approval from relevant authorities. Out of the total purchase consideration, RM175 million will be offset by ORSB against its contribution to the issued share capital of AHSB. 

 

Under the project agreement, AHSB has appointed ORSB to procure, oversee and manage the design, execution, completion and delivery of the architectural works, mechanical and electrical works and fit-out works for the luxury hotel. ORSB will receive up to RM200 million in project costs, 70% of which will similarly be offset against its contribution to AHSB.

 

KEL, holding a 30% stake, is expected to make cash contributions towards its share of the purchase price and project costs. Both ORSB and KEL will also make proportional contributions toward stamp duties and charges arising from the transfer of strata titles of the luxury hotel to AHSB.

 

The luxury hotel has a floor area of approximately 24,284 sqm, and is one of two hotels in the broader Oxley Towers KLCC development, which includes serviced suites, retail spaces, and an office block. The hotel is expected to be operational by Dec 31, 2027, and will be managed by Langham Hotels Management (HK) Limited under the Langham brand.

 

KEL, a related corporation of Langham, is set to hold a 30% interest in the hotel through AHSB.

 

According to the group, the proceeds from the sale of 30% interest in the luxury hotel will contribute &ldquo significantly positively&rdquo to the cash flow of Oxley Holdings 5UX . 

That said, the sale is not expected to have a material impact on the earnings per share or net tangible assets per share of the group for the current financial year ending June 30, 2025.

PROPERTY developer Oxley Holdings said on Friday (Aug 23) that it expects to post a net loss for both the second half and full year ended Jun 30, 2024.

 

In a bourse filing, the company attributed this to impairment losses, finance costs, and lower revenue recognised from the group&rsquo s property development projects.

 

The company will release its unaudited financial results on or before Aug 29.