HLIB Anticipates Transformative Earnings Phase For IOI Prop

Hong Leong Investment Bank Bhd (HLIB) has reiterated a BUY call on IOI Properties Group Bhd (IOIPG) with an unchanged target price of RM4.05, implying a significant upside of over 114%. The research house said the upcoming launch of the W Residences – Marina View in Singapore, with a gross development value (GDV) of S$3.65 billion (approximately RM12 billion), could mark a transformative earnings phase for the group between FY26 and FY28.

The 51-storey Marina View project, scheduled for preview on June 28, features a dual hotel-residence model integrating a W Hotel on the lower floors and branded residences from the 15th to the 51st floor. According to HLIB, it will be the only fully integrated and managed W-branded residential development in Singapore, offering 683 units and setting a new standard in the city’s ultra-luxury segment.

Residences will start at an elevation equivalent to the 20th storey of typical buildings, providing noise insulation and sweeping panoramic sea views. Over half the units are expected to enjoy a 270° sea view, framed by adjacent green zones such as the upcoming Central Linear Park and The Commons at Marina Bay.

HLIB highlighted that Marina View’s pricing, at an average of S$5,000 per square foot, is aligned with global branded residence benchmarks and caters to the ultra-high-net-worth segment, where exclusivity and prestige outweigh pricing concerns. The monthly maintenance fees are projected to be significantly lower than competing developments, owing to efficiencies from its integrated operations. The firm estimates that a typical 3-bedroom unit at Marina View would cost residents about S$7,500 per month in mortgage and fees—substantially less than a comparable hotel stay in the city.

HLIB also noted that IOIPG may seek an extension for its Additional Buyer’s Stamp Duty (ABSD) deadline, originally set for September 2026. The Singapore government has recently introduced provisions that allow for extensions in the case of large-scale or complex developments, a category Marina View could qualify under. An approved extension would help the developer avoid significant penalties and preserve profit margins.

Assuming a full take-up and a 20% net profit margin, the project could contribute up to RM803 million annually to IOIPG’s bottom line over three years, HLIB said. Even with potential ABSD penalties, the margin would still be substantial at 11%. Construction has already reached the 10th floor as of end-May, suggesting that revenue recognition and cash flow generation could begin promptly once unit sales are launched.

While the market may question the project’s ability to sell at premium prices, HLIB argued that the scepticism underestimates both local demand and Singapore’s global appeal as a safe-haven investment destination. With Marina View positioned to fill a gap in the city’s luxury housing market, HLIB believes IOIPG stands to benefit significantly from the shift in regional property investment sentiment.