Latest news with #RM2.75
New Straits Times
4 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
4 days ago
- Business
- Malaysian Reserve
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
New Straits Times
4 days ago
- Business
- New Straits Times
IOI Properties to fully acquire Singapore's Scottsdale for RM2.75bil
KUALA LUMPUR: IOI Properties Group Bhd is acquiring the remaining 50.1 per cent stake in Singapore-based Scottsdale Properties Pte Ltd for S$834.22 million (RM2.75 billion). The acquisition will be carried out via its unit, IOI Consolidated (Singapore) Pte Ltd, which currently holds a 49.9 per cent stake in Scottsdale. Upon completion, IOI Consolidated will fully own Scottsdale. The purchase price is based on 50.1 per cent of the net assets of Scottsdale and its subsidiaries, with the South Beach property valued at S$2.75 billion (RM9.05 billion), the group said in a filing with Bursa Malaysia today. IOI Properties paid a deposit of S$13.75 million (RM45.68 million) on May 20 and will make a second deposit of S$27.50 million (RM90.52 million) within two weeks of signing the share sale agreement. The balance will be funded through internal resources and bank borrowings. Scottsdale owns South Beach Consortium Pte Ltd (SBC), which holds the leasehold title to South Beach Tower, South Beach Avenue and the JW Marriott Hotel Singapore South Beach — excluding the residential components. "Completion is expected to be in the second half of 2025, or such other date as the purchaser and the vendor may mutually agree," it said. IOI Properties said the acquisition is in line with its strategy to strengthen recurring income from investment and hospitality assets in Singapore. "The South Beach property is a mature, income-generating asset with office, retail and hotel components. The proposed acquisition is expected to provide the group with a stable and sustainable income stream," it said. Located in a prime area, the integrated development comprises 508,869 square feet (sq ft) of Grade-A office space, 30,797 sq ft of retail space and a 634-room JW Marriott hotel. The group said the deal would also enhance its position as a major landlord of premium office space in Singapore, complementing its upcoming IOI Central Boulevard Towers. Following the acquisition, IOI Properties' earnings per share is expected to rise from 37.45 sen to 46.88 sen, primarily due to a one-off revaluation gain and full earnings consolidation of the South Beach property.
The Star
13-05-2025
- Business
- The Star
Kim Loong's milling margins set to recover
PETALING JAYA: AmResearch expects palm oil company Kim Loong Resources Bhd 's net profit to improve quarter-on-quarter but stagnate year-on-year in the first quarter of its 2026 financial year ending Jan 31 (1Q26). The research firm said the earnings recovery from 4Q25 is envisaged to be underpinned by higher milling margins and a rebound in the supply of fresh fruit bunches (FFB). 'We believe that Kim Loong would be raising its milling processing charge by RM15 per tonne in 1Q26 to account for an increase in sustainability compliance costs. 'On a yearly basis however, we think that its net earnings would be flat in 1Q26 as a small drop in FFB production is offset by stronger palm product prices,' the research house said. 'We maintain 'buy' on Kim Loong for its decent dividend yield of more than 6% and pure exposure to crude palm oil prices,' said AmResearch, which has a RM2.75 fair value on the stock.
