Major Singaporean property developer Oxley Holdings (the outfit behind East London’s 37-acre Royal Wharf scheme) has bought into London’s biggest privately-owned residential developer Galliard Group to the tune of £50m for a 20% stake in the business.
The Oxley deal revolves around a subscription and shareholders’ agreement to acquire a 20% stake in the enlarged share capital of Galliard Group (which usually operates under the Galliard Homes banner) for £50m.
Galliard’s founder Stephen Conway will stay on as Chairman and CEO, but Oxley’s Chairman & CEO, Ching Chiat Kwong, and Deputy CEO, Low See Ching, will be appointed as Investor Directors to the board of Galliard.
It’s being billed as a “strategic acquisition” that’ll see Singapore-listed Oxley “capitalizing and leveraging on Galliard Group’s construction and property development expertise and operating network and contacts in the UK” to expand its operations on this side of the planet.
US private investment firm Cain Hoy put £225m into Galliard at the back-end of last year, creating a 50:50 JV with a £1bn pipeline (allowing the “London’s biggest privately-owned resi developer” claim); Oxley’s additional £50m investment is just another step on for Stephen Conway’s ambition to become the capital’s biggest housebuilder. At present, his firm counts over £1.6bn-worth of forward sales, with nearly 6,000 residential units under construction, and has sites in planning with a completed value of £2bn.
Oxley’s been listed on the Singapore Stock Exchange since 2010. Billed as a “lifestyle property developer specialising in the development of quality residential, commercial and industrial projects,” the firm currently has projects on the go across South East Asia, the UK and Ireland.
Ching Chiat Kwong, Chairman & CEO of Oxley: “This investment marks our strategic alliance in London with a leading well-established and reputable property developer – Galliard Group. Galliard has a well proven track record and this acquisition signals our confidence in the UK property market and London in particular. We foresee significant collaboration with Galliard’s vertically integrated business model with that of Oxley. We look forward to leveraging this partnership in a variety of ways and hopefully complement our future developments in London.”
Stephen Conway, Chief Executive of Galliard Homes: “We are delighted to cement our association with Oxley Holdings, one of Asia’s most dynamic and fastest growing property development companies. We believe this milestone transaction by Oxley will create business opportunities for both Galliard and Oxley. The synergies are obvious. Galliard is a London-centric developer that has a strong selling profile in Singapore. Oxley is a dynamic Singapore-based property developer with a rapidly growing London presence. This transaction complements our ongoing and highly successful exclusive 50:50 joint venture with Cain Hoy, the private investment company, under the name Galliard Developments Ltd. These are very exciting times for the Galliard Group and its partners.”