IOI Properties to take full ownership of South Beach in RM2.75b deal
IOI Properties Group Bhd (IOIPG) is acquiring the remaining 50.1% stake in Singapore's South Beach development from joint venture partner City Developments Ltd (CDL) for S$834.2 million (approximately RM2.75 billion), bringing its ownership to 100%.
The deal, executed via IOIPG's wholly owned unit IOI Consolidated (Singapore) Pte Ltd, is based on an agreed property value of S$2.75 billion, a 3% premium over its last independent valuation of S$2.67 billion as at end-2024.
Completion is expected by the third quarter of 2025, subject to approvals.
'The acquisition of the 100% equity stake in this landmark development marks a significant strategic expansion for IOIPG in Singapore,' said IOIPG group CEO Lee Yeow Seng.
'Combined with the IOI Central Boulevard Towers and the W Singapore – Marina View hotel, this acquisition will elevate the Group's profile as one of the major landlords of premium office space and a prominent player in the hospitality industry within the republic,' he added.
South Beach is a 3.5-hectare mixed-use development directly linked to Esplanade and City Hall MRT stations, with about 81 years remaining on its 99-year lease.
As at March 2025, its office and retail segments had occupancy rates of 92.4% and 92.5%, respectively.
The acquisition will be funded via a mix of internal funds and borrowings.
IOIPG expects EPS to rise from 37.45 sen to 46.88 sen for FY2025, driven by remeasurement gains and full earnings consolidation. Net gearing is projected to increase from 0.70x to 0.93x post-completion.
CDL, which is divesting its stake, said the move supports its capital recycling strategy.
'This strategic divestment enables CDL to realise exceptional value, while entrusting the ownership to a partner that knows South Beach well, marking a natural evolution in our successful partnership,' said CDL executive chairman Kwek Leng Beng.
CDL retains about 2.6 million sq ft of commercial and retail space in Singapore and continues to operate six hotels, including The St. Regis Singapore and The Singapore EDITION.
IOIPG's total assets now stand at RM47.93 billion as at March 31, 2025. — TMR
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 days ago
- The Star
IOI Properties to launch The Pentagon at Bandar Puteri Bangi
IOI Properties Group Bhd (IOIPG) is set to launch its next commercial phase, The Pentagon at Bandar Baru Bangi in Selangor. Comprising 18 units of double-storey shop offices, the development features a linked semi-detached concept with expansive built-ups and high ceilings. The project is within walking distance to the upcoming Bangi Fresco, a 4.98ha lifestyle and retail hub unveiled in March, set to be fully managed by IOIPG's leasing team. It is also a stone's throw away from the township's existing Lotus's hypermarket. 'Together with components such as Kubica Square, Enigma Square, Lotus's and Bangi Fresco, The Pentagon forms the commercial heartbeat of the township, complementing the agile built-ups of existing commercial offerings with larger lot sizes and voluminous interiors,' said IOIPG Bangi and Sepang general manager Wong Peen Fook. 'The linked concept maximises visibility while keeping the distinction of semi-D designs. The spacious layouts cater for entrepreneurs and businesses seeking expansive premises for their operations, suitable for food and beverage chains, showrooms, education centres, car workshops and more. 'In addition, it leverages Bandar Puteri Bangi's strategic location, with direct access to the North-South Highway and accessibility to the Kajang-Seremban Highway, South Klang Valley Expressway and more. 'This gives The Pentagon prime connectivity to the Kuala Lumpur city centre, Putrajaya and other surrounding destinations and points of interest, including many nearby industrial parks,' he added. The 145.69ha Bandar Puteri Bangi township includes a balanced range of residential and commercial components, as well as ample greenery and public spaces. Thoughtfully crafted spaces Spanning 1.81ha, The Pentagon draws its name from the shape of the plot it shares with Kubica Square, emphasised by its geometric aesthetic elements integrated throughout its modern facade. It offers lot sizes of 45' x 70', 50' x 70' and more, significantly larger than surrounding developments, with ceiling heights of 14' for ground floor spaces and 12' for higher storeys, to accommodate a wide range of business needs. Gross prices for shop office units start from RM3.6mil. 'The Pentagon's ample built-ups, ranging from 5,545sq ft to 7,046sq ft, are showcased with extensive glass panels throughout its design, seamlessly blending interior and exterior spaces while maximising natural lighting. 'The larger widths of shoplot units, ranging upwards from 45' to 50', serve to enhance visibility for business owners and investors, while a 15' wide open terrace promotes walkability and flow,' said Wong. Individual units are designed with rear roller shutter access to streamline loading and unloading operations. Additionally, 263 car park bays cater for visitor convenience, with an average allotment of 15 car park lots per shop office unit, and four electric vehicle (EV) bays. Leveraging surrounding pull factors The Pentagon leverages the growing demographics of Klang Valley South, with a catchment population of more than 680,000 from surrounding areas, as well as the 145.69ha integrated township itself, with over 2,000 homes handed over to date and an estimated resident population of more than 5,000. 'The Pentagon is set to benefit from proximity to Bangi Fresco, an upcoming retail hub with planned retail facilities spanning 100,000sq ft of net lettable area,' said Wong. 'These include 24 shops and five waterfront eating outlets, al fresco dining spaces and four drive-through outlets, as well as a 19,000sq ft grocery operator. Other features include a 10,000sq ft event space as well as a gym, positioning Bangi Fresco as a one-stop lifestyle destination for the community. 'In addition, the presence of numerous academic institutes nearby, such as Universiti Kebangsaan Malaysia, Nilai University and primary and secondary schools, has contributed to strong demographics for the township in terms of families, students and supporting workers, building a ready catchment population for businesses,' he added. According to IOIPG, The Pentagon draws its name from the shape of the plot it shares with Kubica Square, emphasised by its geometric aesthetic elements integrated throughout its modern facade. To date, Bandar Puteri Bangi features a balanced range of residential and commercial components, from luxurious landed and high-rise homes—such as Arawani and Caladia—to existing three- and four-storey shop offices, like Enigma Square. On top of that, ample greenery and public areas across the township offer social spaces for people to come together close to nature. These include the Oasis Park, a serene waterfront landscape home to over 90 known flora and fauna species, as well as the Geopark, a green sanctuary with a jogging trail and football field. 'Moving forward, we have exciting launches in store for Bandar Puteri Bangi in the coming months, designed to expand its vibrant array of property offerings. 'These include a planned lakeside precinct with landed homes and its own integrated commercial hub,' Wong concluded. To learn more about Bandar Puteri Bangi and join its growing community, click here or call 03-8929 9988.
New Straits Times
3 days ago
- New Straits Times
IOI Properties' Singapore expansion to drive 9pct earnings uplift in FY26
KUALA LUMPUR: IOI Properties Group Bhd's plan to acquire the remaining 50.1 per cent stake in Singapore-based Scottsdale Properties Pte Ltd is expected to deliver a meaningful earnings uplift and enhance its strategic presence in the city-state. Hong Leong Investment Bank Bhd (HLIB) said the acquisition could contribute an earnings uplift of RM89.5 million or 1.63 sen in earnings per share (EPS) in calendar year 2026 (CY26), representing nearly nine per cent of projected financial year 2026 (FY26) earnings. "Post-acquisition, net gearing is estimated to rise to 0.93 times from 0.70 times as at June 30, 2024," it said in a note. Yesterday, IOI Properties announced it is acquiring the remaining stake in South Beach development for S$834 million (RM2.75 billion), taking full ownership of the Grade A office, JW Marriott Hotel, and its retail component. HLIB said the group's higher gearing remains manageable given its stable recurring income, strong assets, and upcoming real estate investment trust (REIT) listing plan. The firm also noted that the acquisition involves operational, cash-generating assets unlike previous deals such as IOI Central Boulevard and Marina View, which locked in capital for several years before yielding returns. "As such, we expect the steady income streams from the South Beach development to sufficiently cover interest obligations, supporting a healthier debt servicing profile," it said. HLIB has maintained its "Buy" rating for the group with an unchanged target price of RM4.05. The firm said IOI Properties offers investors a rare diversified market exposure, anchored by its strategic presence in Singapore's resilient and high-value real estate market. It also holds a deep-rooted position in Malaysia's property sector, which is undergoing a structural uplift driven by economic reforms, infrastructure push, and industrial expansion. "This diversified footprint provides both defensive stability and growth opportunity, reinforcing IOI Properties' position as a compelling proxy for long-term property sector upside across the region," it added.
Malaysian Reserve
3 days ago
- Malaysian Reserve
IOI Properties retains Neutral, target price lowered to RM1.79
IOI Properties Group Bhd announced the acquisition of remaining 50.1% stake in South Beach project in Singapore from its joint venture partner for S$834.22m or equivalent to RM2.75b. We are neutral on the acquisition as it is expected to increase net gearing of IOI Properties Group to 0.87x from current elevated net gearing of 0.75x. We make no changes to our earnings forecast but revise our target price lower to RM1.79 from RM1.84 after widening revaluation net asset value discount in view of the elevated net gearing. Maintain Neutral on IOI Properties due to limited catalyst in the near-term. – MIDF Amanah Investment Bank Bhd (June 5, 2025) (Calls by analysts tracked by Bloomberg: 5 Buy, 2 Hold, 1 Sell; Consensus target price: RM2.47)
