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.

No person has been arrested in connection with Pili Land either, says chief executive&rsquo s lawyer

 

PROPERTY developer Oxley Holdings has clarified that no person has been arrested in connection with chief executive officer Ching Chiat Kwong&rsquo s purchase of Palazzo Dona and Palazzo Papadopoli in Venice.

 

Ching is also not subject to any personal restrictions in Italy, and no precautionary measure restricting personal liberty has been requested by the public prosecutor or ordered by the Court of Venice against him, Oxley said on Monday (Jul 29). 

 

The group&rsquo s clarifications follow media reports of Ching&rsquo s alleged involvement in corruption investigations against public officials in Venice. 

 

&ldquo The arrests of Venetian public administrators mentioned in the press concern facts totally unrelated to Mr Ching&rsquo s investment activities in Venice,&rdquo the group said. 

 

The group was responding to news articles detailing Ching&rsquo s alleged involvement in a corruption probe involving Venice Mayor Luigi Brugnaro, who is said to have granted favours to developers in exchange for kickbacks. 

 

The Associated Press reported on Jul 17 that Brugnaro and two aides were being investigated for allegedly agreeing to ensure approvals for a 348,000 square metre residential and commercial project by Ching for 150 million euros (S$218.4 million). 

 

The development was for a piece of land Brugnaro bought for five million euros at a public auction before he was mayor. 

 

In a bourse filing, Ching clarified that the allegations were brought about by Claudio Vanin, the de facto director of a general contractor company that was appointed to develop projects in Tuscany and Venice &ndash Ching&rsquo s personal investments. 

 

Vanin had accused Ching of allegedly reaching an agreement with the Venice mayor to obtain a change in the building indexes and a favourable price for the purchase of two buildings owned by the municipality of Venice &ndash Palazzo Dona and Palazzo Papadopoli. In exchange, the purchase price of the waterfront area, also known as Pili Land, would be increased.

Ching had considered the possibility of Oxley Group developing Pili Land into a waterfront township and a feasibility study had been carried out. 

 

However, based on the results of the study, it was determined that any development project would not be commercially viable as the costs would be too high. There were no further steps taken in respect of Pili Land, and no discussions on the purchase price, the group said. 

 

As for Palazzo Dona and Palazzo Papadopoli, these were for Ching&rsquo s personal investments and carried out in his personal capacity, the group said on Jul 25. 

 

On Monday, Oxley Group added that according to Ching&rsquo s lawyer, no person has been arrested in connection with Pili Land either.

 

Following a report by the website Gutzy on July 24, and an AP News story on July 17, that Oxley Holdings 5UX 0.00% chairman Ching Chiat Kwong paid &euro 73,000 to the accounts of councillor Renato Boraso, who is now in jail, for the purchase of Palazzo Papadopoli, a municipal property, The Edge Singapore reached out to Ching. As a result, Eric Low, deputy CEO of Oxley issued a clarification on July 24 and 25 via SGXnet, explaining what actually transpired in Italy.  

 

  The source of the Gutzy and AP News reports are ANSA. According to AP News, the mayor of Venice &ldquo is under investigation in a corruption scandal that has landed his top public works official in jail for an alleged system of kickbacks in return for granting favours to developers, Italian media reported on July 16,&rdquo AP News says.

 

AP News quotes ANSA which reported that &ldquo Mayor Luigi Brugnaro along with two aides are under investigation for allegedly agreeing to ensure approvals for a 348,000 sq m (3.7 million-square-feet) residential and commercial project by a Singapore developer in exchange for EUR150 million&rdquo .

 

Two different properties are referred to in these reports. The Gutzy report refers to Palazzo Papadopoli, and AP News refers to a 358,000 sq m site. Halfway through the Gutzy report, a reference is made to the &ldquo Pili land deal&rdquo . There is also reference to Luis Lotti.

 

First Palazzo Papadopoli. This property is owned by Ching in his personal capacity. &ldquo I bought Palazzo Papadopoli in a public tender where I bid EUR10.8 million for the property,&rdquo he says. &ldquo EUR10.8 million wasn&rsquo t exactly cheap as I was the only bidder. I wondered if I should have bid a lower price. This property was a police station which I think I can develop into a 6-star hotel. There are two gardens in front of the building and the architect told me we could use them for al-fresco dining. And I like the building.&rdquo

 

&ldquo Because of the pandemic everything stopped and the Venetian authorities used the building as a vaccination centre. The building was released to me after the pandemic. This case has nothing to do with me. The news report said my manager paid EUR73,000 and I too was involved in getting a lower price but there was only one tenderer, me,&rdquo Ching continues. Lotti looks after Ching&rsquo s properties in Italy.  

Although the renovation of Palazzo Papadopoli is likely to be expensive. Ching reckons it&rsquo s worth the expense. &ldquo You can&rsquo t build a new building. I believe that Venice is unique, it&rsquo s a water city, and tourists will come,&rdquo he says.

 

The Pili Land is the 368,000 sq m waterfront property. According to ANSA, development was slated for a piece of land that Brugnaro (the Mayor) bought for EUR5 million at a public auction before he was mayor, and which was placed under a blind trust when he took office. The value of the land, on the mainland facing the Venetian lagoon, rose after it was slated for a public project during his tenure, the report says.  

 

In an Oxley announcement on July 25, the company says Ching had considered the possibility of the Group developing the Pili Land into a waterfront township (similar to the Royal Wharf project in the UK). A preliminary feasibility study had been carried out. However, based on the results of the study it was determined that any development project would not be commercially viable as costs would be too high. There were no further steps taken in respect of the Pili Land and no discussions on the purchase price or any other details had taken place.  

 

&ldquo I went to Venice, and they showed me a few projects. One of them was Pili Land, by the sea, linked by a bridge to Venice. I did a feasibility study because there will be remediation land costs. I called DB Architects to ask their associate to do a feasibility study. The cost was very high. The Venetian authorities didn&rsquo t tell me what the land cost was,&rdquo Ching says.

 

After the feasibility study, Ching switched his attention to another public tender, Palazzo Dona, which he acquired for EUR7 million in his personal capacity. He turned it into a boutique hotel with 30 rooms and it&rsquo s rented to a hotel operator.

 

As for the ANSA report picked up by AP News, which referred to Lotti making a payment of EUR73,000, Ching says Lotti didn&rsquo t have anything to do with any payments to the councillor mentioned in the article. 

The investigation does not compromise his suitability for the role, the company&rsquo s nominating committee says

 

PROPERTY developer Oxley : 5UX -1.27% issued a clarification on Wednesday (Jul 24) night following articles that reported the alleged involvement of its executive chairman and chief executive officer, Ching Chiat Kwong, in a corruption investigation against public officials in Venice, Italy. 

 

Ching said the allegations are &ldquo unfounded and untrue&rdquo , and has engaged lawyers to advise him on the matter. 

 

The company said the chief executive was acting in his personal capacity in Italy, and that the transactions and investigations were not related to Oxley. The mainboard-listed property developer noted that the investigation has not affected the group&rsquo s business and operations. 

 

The group was responding to three news articles detailing Ching&rsquo s involvement in a corruption probe involving Venice mayor Luigi Brugnaro who allegedly granted favours to developers in exchange for kickbacks. 

 

The Associated Press reported on Jul 17 that Brugnaro and two aides are being investigated for allegedly agreeing to ensure approvals for a 348,000 square metre residential and commercial project by Ching for 150 million euros (S$218.4 million). 

 

The development was for a piece of land Brugnaro bought for five million euros at a public auction before he was mayor. 

 

In a bourse filing, Ching clarified that the allegations were brought about by Claudio Vanin, the de facto director of a general contractor company that was appointed to develop property projects in Tuscany and Venice &ndash Ching&rsquo s personal investments. 

 

Vanin had accused Ching of allegedly reaching an agreement with the Venice mayor to obtain a change in the building indexes and a favourable price for the purchase of two buildings owned by the municipality of Venice &ndash Palazzo Dona and Palazzo Papadopoli. In exchange, the purchase price of the waterfront area &ndash also known as Pili Land &ndash will be increased.

 

Addressing the Pili Land deal, Ching said that contact between Brugnaro, which occurred in 2016 and 2017, did not result in negotiations. 

 

As for the allegations surrounding the sale Palazzo Papadopoli, Ching said he acquired the property through public and competitive procedures.

 

As a result of the allegations by Vanin, Ching was added to a register of persons against whom investigations are in progress. No charges by the Venice Public Prosecutor&rsquo s Office have been brought against him, he said. 

 

Oxley&rsquo s nominating committee, as well as its board, have determined that the investigation does not compromise Ching&rsquo s capabilities to carry out his roles in the company, and will continue to evaluate his suitability based on updated information.

Oxley had said allegations of Ching&rsquo s involvement in Venice corruption probes were untrue

 

PROPERTY developer Oxley Holdings : 5UX 0% issued further clarifications to the allegations around its CEO in a bourse filing on Thursday (Jul 25).

 

The company announced that upon further examination of the background facts, executive chairman and chief executive officer Ching Chiat Kwong informed the board that he was representing Oxley in considering Pili Land in Venice. He had considered the possibility of Oxley developing the land into a waterfront township.

 

A preliminary feasibility study was carried out, but the results showed that the costs would be too high for the project to be commercially viable. No further steps were taken regarding Pili Land and no discussions about the purchase price or any other details had taken place.

 

In an earlier announcement on Wednesday, Oxley said that allegations of Ching&rsquo s involvement in corruption investigations against public officials in Venice, Italy were unfounded and untrue. This was in response to three new articles detailing his involvement in a probe involving Venice mayor Luigi Brugnaro, who allegedly granted favours to developers for kickbacks.

 

Other than Pili Land being undertaken as a project by Oxley, the other purchases of Palazzo Donà and Palazzo Papadopol were Ching&rsquo s own personal investments.

Oxley Holdings has clarified that Executive Chairman and CEO Ching Chiat Kwong allegations against Ching in three news reports in July are unfounded and untrue. The reports allege that the Venice mayor is under investigation and Ching is involved in the matter. " [Mr Ching] has engaged lawyers to advise him in the matter. No charges have been brought against Mr Ching by the Venice Public Prosecutor&rsquo s Office," the Oxley Holdings 5UX -1.27% announcement says. 

 

Ching' s name has been added in the register of persons against whom investigations are in progress. The entry is a result of allegations made to the Venetian judicial authorities by Claudio Vanin, a person convicted by a definitive judgement for bankruptcy and subject to trial for extortion. Vanin was the de facto director of Sama Global Italia S.r.l. (Sama), a company which Ching had appointed as general contractor for the development of certain projects in Tuscany and Venice, being Ching&rsquo s personal investments.

 

According to the Oxley announcement, it was discovered that Sama had sent payment requests for work done in which the signature of the director of works had been forged (both architects involved had reported the falsification of their signatures to the judicial authorities). As a result, all relations with Sama, as well as with Vanin, were interrupted. This has led to several civil litigations in which   Ching&rsquo s companies were victorious.

 

Following the outcome of the unfavourable judgements, Vanin started to send to the Public Prosecutor' s Office complaints and allegations, among which were the accusations made by Vanin that Ching allegedly reached an agreement with the Mayor of Venice to obtain, in exchange for an increased purchase price of the waterfront area known as the Pili Land, a change in the building indexes and a favourable price for the purchase of two buildings at that time owned by the Municipality of Venice (Palazzo Donà and Palazzo Papadopoli). For these allegations, Vanin is currently being investigated for slander and extortion by the Venice Public Prosecutor' s Office. 

 

The contacts between Ching and the Mayor of Venice for the Pili Land, took place between 2016 and 2017. The contacts that took place never resulted in either a negotiation or in any design phase.

 

The acquisition of Palazzo Papadopoli, by Ching was through public and competitive procedures. Previous attempts by the Municipality of Venice to sell it at a higher auction base had failed (proving that the sale price that had been set was excessive).

 

The Oxley announcement says Ching had never met or known Councillor Renato Boraso, alderman at the Municipality of Venice. Vanin however, had personal and professional relations with Councillor Renato Boraso. Vanin admitted to the Police having received on his personal e-mail address the request for payment of Euro73,000, for consultancy activities, from Renato Boraso, and he also admitted to having forwarded this request to the e-mail address of his son, Federico Vanin, who was the only shareholder and sole director of the company that made the wire to Councillor Renato Boraso. There is no document proving that the payment in question is related to the sale of Palazzo Papadopoli, nor is there any evidence that Ching or his managers in Italy are aware and ever played a role in such payment, Oxley says.

 

Investigative and defensive activities are being carried out by the lawyers appointed by Ching, aimed at proving and documenting the slanderous nature of Vanin' s statements and demonstrating the full integrity of Ching' s actions in the real estate acquisitions in the city of Venice.

 

Oxley' s Nominating Committee and the Board are of the view that the Investigation does not at this juncture suggest any adverse finding on the character and integrity of Ching nor does it compromise his capabilities as the Executive Chairman and Chief Executive Officer of the Company.   Ching, for his part, will keep the Board updated on the progress of the Investigation and the Company will make further announcements on subsequent developments as and when appropriate. The Board will continue to monitor the progress of the Investigation, Oxley says. 

Oxley Holdings has fully redeemed its $133 million 6.9 %. notes due end 2024 on July 8. 

 

Since its first note issue, the group has had an unbroken track record of notes redemption and a total of more than $1 billion of notes have been redeemed since November 2019. 

 

On its overseas project updates, Oxley&rsquo s Phnom Penh Shangri-La Hotel has been completed and is expected to be fully open to the public by the end of the year. The hotel, which has 303 rooms, sky dining facilities, a sky bar as well as swimming pool, gym and spa facilities, is located along the Mekong River, a prime location for both leisure and business travellers.

 

Meanwhile, the OxleyTower KLCC, is slated to be completed by early 2025. Situated at the heart of Kuala Lumpur' s bustling city centre and adjacent to the renowned Petronas Twin Towers, Oxley Towers KLCC comprises three skyscrapers atop a two-story retail podium. This integrated development offers two luxury hotels and residences, premium office spaces, and upscale retail outlets. Furthermore, it will also become the fourth-tallest building in Malaysia and will boast the world' s tallest open-to-sky swimming pool.

 

Ching Chiat Kwong, executive chairman and CEO of Oxley Holdings 5UX 0.00% , says: &ldquo We are delighted to announce the full redemption of our $133 million 6.9% notes. This achievement reflects our steadfast commitment to maintaining strong financial discipline and fulfilling our financial obligations. We remain focused on sustainable growth and value creation for our stakeholders.&rdquo