IOIProp to cash in on Johor landbank
IOI Properties Group Bhd (IOIProp) is poised for long-term growth, supported by the recent improvement in relations between Johor and Singapore.
The recent announcement of the Johor-Singapore Special Economic Zone (JS-SEZ) and the rapid transit system link (RTS Link) project are tangible signs of warming relations that have been buzzing in the news recently.
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The Star
3 days ago
- The Star
IOIProp cements regional real estate push
PETALING JAYA: IOI Properties Group Bhd 's (IOIProp) latest move to take full control of Singapore's landmark South Beach development signals a bold step towards consolidating its regional real estate ambitions. Analysts see this as a strategic pivot that could both unlock value and test the developer's capital discipline. Hong Leong Investment Bank Research (HLIB Research) described the acquisition as 'a strategic and value-accretive move'. The research house said the transition from a 49.9% joint-venture stake to full ownership unlocks several key advantages – including full strategic control, operational synergies, and immediate earnings uplift. 'The South Beach assets are already income-generating, providing an immediate boost to IOIProp's earnings base and recurring income stream,' HLIB Research highlighted. 'Post-acquisition, IOIProp cements its status as one of the largest asset owners not only in Singapore, but also (as) a growing regional real estate powerhouse,' it added. HLIB Research maintained its 'buy' call on the stock with an unchanged target price (TP) of RM4.05 per share. It estimated an earnings per share uplift of 1.63 sen for IOIProp in 2026, while net gearing is expected to rise to 0.93 times from 0.7 times as of June 30, 2024. 'Despite concerns over higher gearing, the risks appear manageable given its stable recurring income, strong assets and upcoming real estate investment trust (REIT) listing plan,' HLIB Research said. TA Research took a more cautious view, noting: 'We are somewhat surprised by this acquisition, as we had earlier anticipated that the group would prioritise managing its already elevated net gearing levels.' It estimated that, if fully debt-funded, IOIProp's net gearing would climb to 0.87 times. 'IOIProp may be positioning itself for the establishment of a REIT, given its maturing investment property portfolio,' TA Research said, highlighting that it carried a total book value of RM21.3bil as of the financial year ended June 30, 2024. 'Such a move would help cushion the impact of the South Beach acquisition on IOIProp's gearing profile,' it added. TA Research reiterated its 'buy' call, with an unchanged TP of RM2.78, citing IOIProp's historical willingness to raise equity capital to fund strategic investments. Meanwhile, MIDF Research adopted a neutral stance, highlighting that IOIProp's net gearing would increase to 0.87 times post-acquisition. It acknowledged that 'the acquisition will allow IOIProp to have full control and management of the South Beach property, which is generating investment income.' MIDF Research revised its TP for the stock to RM1.79 from RM1.84, after widening the revalued net asset value discount to 65% from 64% in view of the company's higher net gearing. It kept its 'neutral' rating on the developer, citing limited near-term catalysts. IOIProp had announced that its unit, IOI Consolidated (Singapore) Pte Ltd, had signed a conditional share sale agreement to acquire the remaining 50.1% stake in Scottsdale Properties Pte Ltd, owner of South Beach, for about S$834.22mil.
Malay Mail
3 days ago
- Malay Mail
With new ETS on track, KTMB preps Johor, Butterworth, Padang Besar routes
BUTTERWORTH, June 5 — Keretapi Tanah Melayu Berhad (KTMB) has received two out of 10 new Electric Train Service (ETS) sets, worth RM400 million, which are expected to be gradually deployed for operations starting next year. ETS and Intercity Services general manager Nurul Azha Mokmin said that both train sets are currently undergoing testing and commissioning. She said that the acquisition of the new train sets aims to enhance both the quality and capacity of the ETS service, which continues to see strong demand. 'ETS passenger numbers grow by about 10 per cent annually, indicating high user satisfaction. With the upcoming completion of the Gemas (Negeri Sembilan) to Johor Bahru (Johor) route, KTMB plans to expand ETS services to several new destinations. 'We have procured 10 ETS train sets, which are expected to operate on the Gemas-Johor Bahru route, beginning next year. Subsequently, new routes from Johor Bahru to Butterworth and Padang Besar (Perlis) will also be introduced,' she said. She said this to reporters after officiating the Ruby Lounge at Butterworth Station, an exclusive waiting area for ETS Business Class passengers, and attending the distribution of Aidiladha souvenir packs by KTMB chief technical officer Ahmad Nizam Mohamed Amin. She added that over 250,000 ETS and Intercity train tickets, including additional tickets released for the Aidiladha celebration, had been sold as of yesterday, since sales began on May 29. She said this included the sale of 119,000 tickets for the Ekspres Selatan service, which covers the Johor Bahru-Gemas route, and remains in high demand. 'KTMB is also continuing its special service, the Ekspres Lambaian Aidiladha, for the KL Sentral-Tumpat and Tumpat-KL Sentral routes, as in previous years. This year, the service offers two trips, with a total of 872 tickets available,' she said. One-way fares range from RM80 to RM95, with options including premier and superior class seating, superior class sleeping coaches, as well as 'chillax' and cafe coaches for added passenger comfort. As of now, she said that 762 out of the 872 tickets have been sold. The train is scheduled to depart tonight and return to KL Sentral on June 8. — Bernama
Malay Mail
3 days ago
- Malay Mail
Not in e-Kasih? Johor has a new affordable home plan for you
ISKANDAR PUTERI, June 5 — Low-income earners in Johor who are not listed under the federal e-Kasih database can now own their first home. Johor Housing and Local Government chairman Datuk Mohd Jafni Md Shukor said the state government will expand its Projek Rumah Prihatin Johor (RPJ) to all 56 state constituencies in August. 'The move was taken following feedback and complaints that there are still many low-income earners who are not listed in the e-Kasih programme and have failed to be eligible for the state government's affordable housing schemes,' he said. He said the RPJ was developed to support those ineligible for existing federal and state housing programmes. Mohd Jafni said the RPJ was first launched as a pilot in the Machap and Bukit Permai constituencies. Following its success, the state is ready to roll it out statewide. Under the RPJ, homes will be built on land owned by the applicants or their families, with supporting proof via promissory letters. Buyers can choose between a two-bedroom unit priced at RM66,000 or a three-bedroom unit at RM86,000. Both options include a RM30,000 subsidy from the Johor government. Applicants must cover the remaining cost – RM36,000 or RM56,000 depending on the house type – via a loan. 'These homes will be completed within seven months,' said Mohd Jafni. He said the programme is aimed at those who have land but cannot afford to build their own homes. 'Applications are currently open and can be made at the respective district office. 'The approval process only takes three months if all the applicants' conditions are met,' he said.
