PUTRAJAYA: IOI Properties Group Bhd
(IOIPG) is looking to monetise more of its mature assets through its real estate investment trust (REIT) platform and a proposed private trust fund in Singapore, with the aim of unlocking value from its mature assets and strengthening its balance sheet.
Yesterday, the group’s REIT arm, IOIPG Malaysia REIT or IOIPG-M-REIT, launched its prospectus for an initial public offering (IPO) aimed at raising RM2.1bil for IOIPG, ahead of its listing on the Main Market of Bursa Malaysia on Nov 25.
The IPO, the largest M-REIT offering to date, comprises up to 2.2 billion units priced at 96 sen apiece, giving IOIPG-M-REIT an estimated market capitalisation of RM5.3bil upon listing.
Under the IPO, 715.6 million units will be allocated for the retail offering, while up to 1.48 billion units will be offered to institutional investors.
IOIPG intends to retain up to 60% of the REIT’s total issued units after listing, signalling its continued commitment to the trust.
Upon listing, IOIPG-M-REIT is expected to have total indebtedness of RM2.65bil, representing gearing of approximately 34.1% of its total asset value of RM7.79bil.
For the financial year ending Dec 31, 2027, IOIPG-M-REIT is projected to offer a distribution yield of 6.60%, with 100% of its distributable income distributed to unitholders. IOIPG-REIT Management Sdn Bhd chief executive officer Chris Chong said the listing would unlock the value of the group’s mature and established assets while providing investors with an additional investment proposition.
He said the group would prioritise effective asset management, adapting to evolving market needs and working closely with operating partners to maintain its competitiveness.
“Future acquisitions would also be approached with discipline, focusing on asset quality, financial prudence and long-term value for unitholders,” Chong further added.
IOIPG-M-REIT’s initial portfolio comprises nine freehold properties in strategic locations across Selangor, Kuala Lumpur city centre and Penang, with a total appraised value of RM7.66bil as at May 31, 2026.
Its retail anchor is IOI City Mall, one of Malaysia’s largest shopping malls, with over 2.5 million sq ft of net lettable area (NLA).
The portfolio also comprises six hotels operating under Marriott International’s brands, with a combined 1,920 rooms, as well as two office properties, IOI City Towers and PFCC Towers, with a combined NLA of around 1.83 million sq ft.
IOIPG group chief executive officer Datuk Lee Yeow Seng said the group had several properties were nearing readiness for injection into the REIT, including IOI Mall Puchong, IOI Mall Damansara and IOI Mall Kulai.
He said the three malls have a combined NLA of close to two million sq ft, while the group’s development pipeline includes IOI Rio City in Puchong, Selangor, with an NLA of one million sq ft.
The group is also developing two hotels, W Langkawi and The Westin, which Lee identified as among the immediate pipeline assets.
However, Lee said there was no fixed timeline for potential asset injections, as each property would first need to reach maturity before being evaluated and proposed for injection into the REIT, subject to board approval.
On the group’s proposed secondary listing on the Singapore Exchange, Lee said it is targeting early 2027 for the exercise.
He added that the group had strengthened its presence in Singapore through several smaller projects and joint ventures with local partners, giving it a better understanding of the market.
Touching on the proposed Singapore private trust fund, Lee said the group had identified two initial assets for inclusion, namely South Beach Tower and IOI Central Boulevard Towers.
Both properties currently enjoy high occupancy rates, with South Beach Tower recording occupancy of between 98% and 100%.
According to Lee, the assets generate yields of 4% to 5%, while the proposed private trust fund is expected to offer investors a yield of at least 3.5%, in line with market rates for prime Grade A office space in Singapore.
He said that investors in the fund could also enjoy capital appreciation of close to 10% over the next five to seven years.
Asked about the group’s potential acquisition of the historic CHIJMES building complex and Capitol Kempinski hotel in Singapore, Lee said both assets were currently under exclusivity, with further details remaining confidential.
He said an appropriate announcement will be made when the time is right.
