IOIProp’s rental boon

The company expects property sales in Malaysia to be softer in the first quarter of 2022. However, China projects will likely be the key contributor to property sales in the second half of FY22, as about RM960mil worth of properties were launched in Xiamen/Xiang An in December last year.

PETALING JAYA: IOI Properties Group Bhd’s (IOIProp) Central Boulevard in Singapore can generate RM350mil to RM450mil in rental income per year, assuming a conservative rental rate of SG$10 (RM31.05) to SG$11 (RM34.15) per square foot, according to RHB Investment Bank Research.

“This should form a good earnings base for IOIProp to raise its dividend payout in the future. We are optimistic on the rental prospects of this asset as quality office space is highly sought after with the expansion of regional technology or telecommunication sectors in recent years.