SINGAPORE-BASED Oxley Holdings Ltd’s (Oxley) Malaysian unit Oxley Rising Sdn Bhd will have to resubmit plans for the proposed development of a prime piece of land it is acquiring in Jalan Ampang, Kuala Lumpur, after two of its applications to the local council were rejected.

Oxley Rising had initially planned to build two 83-storey skyscrapers comprising offices, serviced suites, hotel and retail space on the parcel just 500m from the Petronas Twin Towers. The freehold land currently houses six bungalows, including Nasi Kandar Pelita and Chef Choi restaurant.

The proposal for the twin high-rises, submitted to the Dewan Bandaraya Kuala Lumpur (DBKL) in May 2014, was rejected in July.

YTS Architecture Sdn Bhd, on behalf of its client Oxley Rising, then handed a fresh application to DBKL for approval. On Aug 5, the new proposal revealed that the height of the buildings had been reduced to 53 and 64 storeys. The plan also offered 765 units of serviced suites, 308 units of hotel rooms and 450 units of offices. The buildings would sit on a 9-storey retail podium cum multi-storey car park. This proposal was rejected on Sept 4, 2014.

Both Oxley Malaysia and Oxley Singapore declined to comment when asked about the details on this project and the plot ratio it is hoping to obtain.

DBKL’s KL City Plan 2020 guide states that the allowable plot ratio for this particular parcel, which Oxley is in the process of acquiring, is eight. However, based on the high plot ratio obtained by Magna Prima Bhd for a project which is less than 1km away, Oxley is probably hopeful of obtaining a plot ratio of at least 12. Magna Prima is redeveloping the former site of Lai Meng primary school.

Oxley announced in November last year that its subsidiary, Oxley Rising, had entered into a deal to buy a 135,356 sq ft land parcel in Jalan Ampang for RM446.67 million, or a record price of RM3,300 psf, from the executors of the estate of Leong Mai Leng.

Based on Oxley’s announcement to the Singapore Stock Exchange (SGX), the purchase price was arrived at on a willing buyer-willing seller basis after taking into account current market prices of the surrounding area and its assessment of the land’s development potential. It added that no formal valuation of the land had been conducted.

A total of RM44.67 million was paid as deposit, and the balance is to be paid on the completion of the acquisition, which is scheduled to take place on or before Nov 4, 2014. Oxley did not reply to The Edge’s query if the deal will be completed as planned.

A land search conducted at the Kuala Lumpur Federal Territory Department of Lands and Mines reveals that as at Sept 19, the parcel had yet to be transferred to Oxley Rising. It had registered a caveat on the parcel on Nov 21, 2013.

The search documents show that this particular lot measures 13,860.03 sq m. However, the announcement to SGX states that the area of the land being purchased is 12,575 sq m. It is not known why there is a difference in size. One possibility is that the size of the lot to be divested is smaller than its original size.

Oxley has been expanding rapidly in Malaysia through land acquisition and joint ventures, though its ventures do not appear to be smooth sailing. It has aborted two ventures so far.

In July this year, Oxley announced that its unit, Oxley Malaysia Pte Ltd, had terminated its proposed acquisition of TCK Capital Sdn Bhd for RM77.85 million.

Oxley Malaysia wanted to take over TCK Capital mainly because the Ministry of Finance had agreed to sell a leasehold parcel in Jalan Hang Tuah, Kuala Lumpur, to TCK Capital in Nov 2011. The plot, measuring 4.73 acres, was supposed to have been sold for RM190 million. The ministry subsequently decided to cancel the sale, resulting in Oxley Malaysia aborting the purchase.

In January this year, Oxley’s subsidiary, Oxley Treasure Sdn Bhd, entered into a memorandum of understanding (MoU) with Sepang Goldcoast Sdn Bhd and its subsidiary, Sepang Bay Sdn Bhd. Sepang Goldcoast and Sepang Bay hold interests in two parcels of leasehold land measuring 116.88 acres in Sepang, Selangor.

Under the MoU, Oxley Treasure would be engaged to develop a mixed development in phases and get 85% of the gross development value (GDV) of the land. The MoU was mutually terminated on June 24, 2014.

Even so, Oxley appears to have plans for projects with at least RM10 billion in GDV in Malaysia. In an Aug 22 presentation, Oxley said its total land parcels in Malaysia amounted to a total of 239,274 sq m, including some parcels that are being developed on a joint-venture basis.

One of Oxley’s projects is the development of a parcel in Section 16, Petaling Jaya, located next to Phileo Damansara. Oxley’s subsidiary, Oxley Diamond Co Ltd, acquired the freehold land measuring 20,234 sq m for RM104.54 million in June last year from Rising Star City Sdn Bhd. Oxley plans to build three blocks comprising serviced apartments, hotel, SoHos, serviced suites and retail space.

This article first appeared in The Edge Malaysia Weekly, on October 13 - 19, 2014.

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