IOI Properties to take full ownership of South Beach in RM2.75b deal
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
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