Singapore firm buys 20% stake in major London resi developer

Singaporean listed property developer Oxley Holdings is acquiring a 20% stake in the enlarged share capital of Galliard Group, a UK residential developer, for £50 mln (€72 mln).

The acquisition strengthens Oxley's presence in London where the firm already owns Royal Wharf, a new waterfront village located in East London.

Oxley’s Chairman & CEO, Ching Chiat Kwong and Deputy CEO, Low See Ching, will be appointed as investor directors to the board of Galliard Group. Stephen Conway, who is the founder of the Galliard Group, will continue as Chairman & CEO of the Galliard Group.

'This investment marks our strategic alliance in London with a leading well-established and reputable property developer,' said Ching Chiat Kwong. '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.'

Oxley, which operates in Singapore, across South East Asia, the UK and Ireland, said the partnership will allow it to capitalise and leverage on Galliard Group’s construction and property development expertise and operating network and contacts in the UK.

Trading as Galliard Homes, the company is currently London’s largest privately owned residential developer and the second largest house builder in the capital. Galliard Homes presently has over £1.6 bn worth of forward sales, with nearly 6,000 residential units under construction. The group has sites in planning with a completed value of £2 bn.

Stephen Conway, Chief Executive of Galliard Homes added: '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. '

The transaction complements the group's ongoing exclusive 50:50 joint venture with Cain Hoy, the private investment company, under the name Galliard Developments.