Page 82 - Forbes - Asia (July - August 2018)

Singapore’s 50 Richest

CHING CHIAT KWONG
Beginning at 9 a.m., prospective down this year, and so is his ranking; he maintains Oxley is still selling around
buyers and their families had started appears three spots lower at No. 49 with 20 Riverfront units a day despite the
to pour into a makeshit tent, listening $545 million. curbs. He calls the condominium “the
anxiously for their numbers, picked by As for the irm’s local land bank cheapest 2018 launch in town,” its units
lottery. Once called, they would decide of 3,900 units—among the largest in currently selling for an average price of
whether to buy one of 300 units on the Singapore—its estimated value, which $880 per square foot. An Oxley project
blueprint, secured by a 5% down pay- includes partner stakes, dropped to $3.5 manager, the 27-year-old Shawn is the
ment. (he largest four-bedroom unit billion from $3.7 billion. While Oxley second of Ching’s three children and
was priced at $1.7 million, or $1,100 per has reduced its leverage in the past ive the only one in the building business.
square foot.) years, it still registers a net leverage ratio “We are going to tweak prices selective-
he crowd was yet another sign that of 2.4, among the highest in the sector. ly,” he says, noting Singapore develop-
Singapore’s property market was inally Ching insists he takes calculated risks. ers have ive years to sell all units in a
picking up steam ater a multiyear stall. In a note to investors, Singapore- development before late-sale penalties
And Ching was on top of it. Outpacing based Maybank analyst Derrick Heng kick in.
competitors in 2017, Oxley had bought characterized Oxley as “highly exposed Elsewhere, Oxley juggles 11 proj-
11 en bloc condominiums—setting of to residential headwinds.” He down- ects in eight foreign countries using
a collective sales frenzy across the city- graded the stock from “buy” to “hold” an asset-light strategy. To reduce risk,
state. On the day of the Ainity launch, and warned investors that Oxley’s “el- he spreads ownership among several
the self-made tycoon was unaware that partners. According to Ching, Oxley’s
ive weeks later his celebratory mood projects abroad are valued at $7 billion
would end abruptly. Ching on meeting —the vast majority of them unleveraged
In early July the Singapore gov- with Barack Obama: and set to generate hety net cash ows,
ernment, fearing a property bubble, “The rst thing he including properties in London, Dublin
imposed cooling measures designed to and Cyprus.
halt the en bloc sales frenzy and rein said was, ‘I like In China, Oxley is the largest stake-
in property prices that had risen more your shoes!’” Ching holder, with 27.5%, in the 200-hectare
than 9% since mid-2017. Gaobeidian township project, located
On hearing the news, Ching says he recalls. “He hugged outside Beijing just north of a new
felt his feet grow cold as he sank down my waist, and I Special Economic Zone called Xiongan
in a chair to plot his response. Spring- New Area. “China wants to make it a
ing into action, he summoned his staf hugged his.” irst-class city,” Ching says, noting that
to launch Riverfront Residences, his the region’s home prices are rising. “We
ith project this year, that very night— evated leverage” is expected to “magnify launch in September. It will be huge.”
before the measures kicked in the next the impact on its bottom line.” Oxley’s head oice is at the top of
day. Realtors contacted prospective buy- So far this year Oxley has sold local Oxley Towers in Singapore’s downtown
ers, and by 8 p.m., Ching himself was residential units worth $735 million core, overlooking Chinatown rootops
directing frantic buyers to form a queue from its ive project launches, with net with a sliver view of the ocean. It’s home
in the showroom. “We sold over 500 margins ranging from 15% to 25%. to a tight-knit team of 50 employees.
units in four hours,” he recalls, a record Ching says he still plans to launch On display are handshake photos with
number for a single day but falling short his remaining six projects planned for local oicials and a collection of tro-
of his original projection by perhaps this year, some 1,900 units, but knows phies as well as statues and paintings of
200 units. future sales won’t meet original expecta- bulls that Ching collects and refers to as
he next day, a Friday, property and tions. Instead of selling 1,000 units by his “Oxley oxen.”
bank stocks took a nosedive. Oxley year-end with 15% to 25% margins, he On a recent morning, Ching rises
shares fell nearly 15% with further now hopes for 800 with 12% to 19% net from his desk in a white jacket from Al-
slides Monday, prompting Ching to buy margins. “he next projects are smaller exander McQueen that reads, “It’s only
back a sizeable chunk—more than 11 and will do well,” he adds, noting that a gambling problem if I’m losing.” He’s
million shares for $2.9 million. At the under the new cooling measures irst- also wearing a sparkling Dior “queen
same time, Oxley’s market cap, which time buyers are exempt from extra taxes bee” T-shirt, black leather bracelets
had more than tripled since it went and need only make a higher down pay- with dangling silver skull charms and
public in 2010, fell from nearly $1.5 bil- ment of 25%, up from a previous 20%. white leather sneakers, the same ones
lion to $1.1 billion. Ching’s net worth is Ching’s Oxford-educated son Shawn he wears in a framed wall photo with

80 | FORBES ASIA JULY / AUGUST 2018