Malaysia's IOI Properties targets potential Singapore Reit listing in 2027
The acquisition will give IOI Properties full ownership of South Beach, which comprises South Beach Tower (pictured), South Beach Avenue and the JW Marriott Hotel Singapore South Beach. ST PHOTO: KUA CHEE SIONG
SINGAPORE - Malaysia's IOI Properties Group is planning to list a real estate investment trust (Reit) in Singapore by 2027, as part of a plan to monetise its assets and cut debt, according to a Malaysia investment bank.
The Reit will include Singapore properties such as the South Beach mixed development and IOI Central Boulevard, which have an estimated combined valuation of $7 billion to $8 billion, wrote Hong Leong Investment Bank analyst Tan Kai Shuen in a June 11 report.
Citing intel from a meeting with IOI Properties chief executive Lee Yeow Seng, Mr Tan noted that the Singapore Reit listing is part of a two-pronged monetisation strategy that also includes a Malaysia Reit listing targeted for mid-2026, with assets valued at RM7 billion (S$2.11 billion) to RM8 billion.
Both listings are expected to improve cash flow and reduce IOI Properties' net gearing, which could rise to around 0.93 times following its recent acquisition of partner City Developments' (CDL) stake in South Beach.
CDL on June 4 agreed to sell its 50.1 per cent stake in South Beach to IOI Properties for about $834.2 million in a deal valuing the complex at about $2.75 billion. It first bought the site for nearly $1.69 billion in 2007 in partnership with a unit of state-owned Dubai World Corp and El-Ad Group. The two partners later exited the project and IOI Properties took a stake in 2011.
The acquisition, expected to be complete in the third quarter, will give IOI Properties full ownership of South Beach, which comprises South Beach Tower, South Beach Avenue and the JW Marriott Hotel Singapore South Beach.
It is expected to be included in IOI Properties' Singapore Reit, together with IOI Central Boulevard. The flagship office property opened in 2024 in the Marina Bay area, eight years after IOI Properties put up a $2.57 billion bid for the site in a November 2016 government land sale tender.
The Reit, targeted to list in 2027, is expected to help IOI Properties lighten its debt load as it expands its presence in the Singapore Central Business District, Mr Tan noted in his report.
Besides South Beach and IOI Central Boulevard, IOI Properties is also the developer of Marina View, after acquiring the site for $1.5 billion in September 2021. It is now building a new mixed-use development on the site that will house a W Singapore luxury hotel as well as new branded residences.
In late 2024, Mr Lee in his personal capacity also acquired Shenton House at Shenton Way for $538 million in a collective sale transaction. He told the media that the intention is to redevelop Shenton House into a mixed-use development with premier office space and luxury branded serviced residences.
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