Latest news with #IOIProperties
Time of India
2 days ago
- Business
- Time of India
Singapore's City Developments to sell office complex stake for $646 million
BENGALURU: Singapore-listed City Developments Ltd said on Wednesday that it will sell its entire 50.1% stake in one of its office complexes in the city-state to Malaysia's IOI Properties for S$834.2 million ($646.37 million). The South Beach complex in a central business district in Singapore includes retail space, a 34-storey office tower, and a 45-storey building housing a JW Marriott Hotel. Upon completion of the deal, expected by the third quarter of the year, IOI Properties will become the sole owner of the commercial components of the South Beach complex, City Developments said in a statement. The deal valued the complex, in which City Developments and IOI have been joint venture partners since 2011, at S$2.75 billion. "This transaction gives a strong boost to CDL's efforts to accelerate capital recycling so as to reduce gearing and redeploy capital," City Developments' CEO Sherman Kwek said. City Developments, one of Singapore's largest property developers, was embroiled in a boardroom tussle earlier this year when its executive chairman, Kwek Leng Beng, accused his son, Sherman Kwek, the company's CEO, of plotting a boardroom coup. However, in March, the company said the executive chairman dropped the lawsuit against his son while adding that both the father and son will remain in their roles. Shares of City Developments rose around 1.6% in early trade before going on a halt. IOI shares were also halted for trade. The shares are expected to resume trading soon.
New Straits Times
2 days ago
- Business
- 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
2 days ago
- Business
- 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)
The Star
3 days ago
- Business
- The Star
IOI Properties to acquire 50.1% stake in Scottsdale Properties
KUALA LUMPUR: IOI Properties Group Bhd said its wholly-owned subsidiary has acquired the remaining 50.1% equity in Scottsdale Properties Pte Ltd it does not already own from Ascent View Holdings Pte Ltd for an estimated S$834.22mil (RM2.75bil). In a filing with Bursa Malaysia, the group said the purchase consideration is based on 50.1% of the consolidated net assets of Scottsdale group as at April 30, 2025. Scottsdale is the parent company of South Beach Consortium Pte Ltd, the registered proprietor of the leasehold strata title properties such as South Beach Tower, South Beach Avenue and JW Marriott Hotel Singapore South Beach (excluding the residential strata title properties) forming part of the South Beach mixed-use integrated development. IOI Properties said the purchase consideration will be satisfied via cash through a combination of internal funds and bank borrowings. According to the filing, the proposed acquisition presents a timely opportunity for the group to increase its ownership of high quality investment properties and hospitality assets, with the objective of strengthening the group's portfolio and increasing the group's contributions to property investment and hospitality and leisure segments in Singapore. "As the South Beach Property is a mature asset and comprises well established, income-generating investment properties/hospitality components across office towers, retail and hotel, the Proposed Acquisition is anticipated to provide the Group with additional stable and sustainable income stream, in alignment with the group's corporate objectives," it said. The proposed acquisition is expected to be completed in the second half of 2025. Trading in the securities of IOI Properties was suspended earlier in the day pending the announcement, and resumed trading at 3.30pm. At the time of writing, the share was down two sen or 1.05% to RM1.88 apiece on two million shares done.
Yahoo
3 days ago
- Business
- Yahoo
CDL to sell $2.75 billion Singapore office site to cut debt
By: Low De Wei (Bloomberg) — City Developments Ltd. agreed to sell its majority stake in one of Singapore's most iconic office complexes, according to a person familiar with the matter, as the developer seeks to reduce debt and regain investor confidence after a family feud. CDL will sell its 50.1% stake in South Beach to minority owner IOI Properties Group Bhd, the person said, requesting not to be identified because the information is private. Malaysian developer IOI will have full ownership following the deal. The deal values the complex at about S$2.75 billion ($2.1 billion), the person said. An IOI spokesperson declined to comment. CDL didn't immediately respond to an emailed query. Shares of CDL rose about 1.6% before a trading halt Wednesday morning, pending an announcement. CDL has been under pressure to sell assets after a feud divided the Kwek family, the wealthiest clan in Singapore. Despite mending relations with his father and Chairman Kwek Leng Beng, the firm's Chief Executive Officer Sherman Kwek acknowledged in April that the dispute had hurt shareholders' confidence, and said that reducing the growing debt load is a priority. The deal will help CDL to meet a pledge to exceed the roughly S$600 million in divestments it made in 2024, which fell short of a S$1 billion target. The complex in Singapore's central business district includes retail space, a 34-story office tower, and a 45-story building housing a JW Marriott Hotel. The purchase adds to IOI's growing presence in Singapore, with residential developments as well as assets like IOI Central Boulevard Towers, a newly opened city centre office project. The Malaysia-listed firm is controlled by the Lee family, which made its fortunes from palm oil. The South Beach development, designed by Norman Foster's architectural firm, has seen ownership changes before. CDL bought the site for nearly S$1.69 billion in 2007 along with two foreign partners, a unit of state-owned Dubai World Corp., and El-Ad Group Ltd. The global financial crisis led to a yearslong delay in construction and the two partners exited the project, with IOI eventually taking a minority stake in 2011. The elder Kwek resisted allowing IOI to take an equal stake in order to maintain control, according to a biography published in 2023. Major tenant Meta Platforms Inc. gave up its seven floors of space at the office tower last year, and occupancy dropped to 92.4% as of the end of March, compared with 94.4% at the end of last year. More stories like this are available on ©2025 Bloomberg L.P.
