IOI Properties to acquire Asia Square Tower 2 in Singapore for S$2.48 bil

KUALA LUMPUR (April 20): IOI Properties Group Bhd's (KL:IOIPG) is acquiring Asia Square Tower 2 in Singapore from CapitaLand Integrated Commercial Trust (CICT) for S$2.48 billion (RM7.70 billion).

The acquisition follows a put-and-call option agreement signed with CapitaLand Integrated Commercial Trust (CICT) for the 46-storey integrated development in the prestigious Marina Bay precinct, according to CICT filing with the Singapore Exchange on Monday.

With this latest acquisition, which is scheduled for completion for the second half of the year, IOI Properties expanded its 100% owned and controlled property investment assets under management in Singapore to S$10 billion.

" ...(and) cementing its standing as a major landlord in Singapore’s central business district" with an enlarged portfolio with a total net lettable area of 2.57 million sq ft, IOI Properties said in an emailed statement on Monday.

The proposed acquisition comes at a time when IOI Properties is planning to spin off some of its prime Malaysian assets into a real estate investment trust (REIT) while weighing similar move in Singapore.

In a separate disclosure, IOI Properties said the agreement between its unit IOI Marina View Pte Ltd and HSBC Institutional Trust Services (Singapore) Ltd — trustee of CapitaLand Commercial Trust, which in turn is a wholly-owned sub-trust of CICT — is subject to two conditions: the buyer obtaining a confirmation from Singapore’s tax authority that Additional Conveyance Duty for Buyers does not apply, and the approval of IOI Properties' shareholders. 

Vertical Capacity Sdn Bhd, a 65.7% shareholder of IOI Properties, has provided an irrevocable undertaking in favour of the CCT Trustee to vote in favour of the acquisition at the extraordinary general meeting to be convened to seek the shareholders’ approval.

Upon the exercise of the put or call option, a sale and purchase agreement shall be deemed to be entered into by the two parties for the proposed acquisition of one ordinary share in MVKimi, representing 100% of the issued share capital of MVKimi, for a purchase consideration of nearly S$1.2 billion or RM3.76 billion.

MVKimi is an investment holding company which, through its wholly owned subsidiary Asia Square Tower 2 Pte Ltd, owns Asia Square Tower 2.

The property, which has direct connectivity to the Thomson-East Coast Line and Downtown Line, comprises Grade A offices with ancillary retail space alongside hotel premises that are master-leased to an unrelated third party.

Completed in September 2013, the asset features large and efficient floor plates with a total net lettable area of approximately 773,000 square feet and has received top recognition for its environmental sustainability.

Based on the valuation report by Cushman & Wakefield VHS Pte Ltd, the valuer commissioned by the manager of CICT and HSBC Institutional Trust Services (Singapore), the property was valued at S$2.25 billion as at Dec 31, 2025. 

In an analyst report on April 15 by HLIB, IOI Properties’ revalued net asset value (RNAV) was estimated at RM35.77 billion, derived from total net present value (NPV) of RM7.17 billion and shareholders’ funds of RM28.6 billion. This translates to RM6.50 per share based on a share base of 5.51 billion shares.

HLIB applied a narrower 20% discount, resulting in a discounted RNAV of RM5.20 per share, which the research house said reflects the group’s proactive asset monetisation strategy and progress in unlocking value from its asset base.

Brief timeline of IOI Properties’ shopping spree, and planned REIT listing

Between 2023 to 2024, IOI Properties also made headlines for its shopping spree of Tropicana Corp Bhd’s (KL:TROP) assets. At the end-2023, it signed a sale and purchase agreement to buy W Kuala Lumpur Hotel for RM270 million cash.

In Jan 2024, it bought Tropicana’s other hotel, Courtyard by Marriott Penang Hotel, for RM165 million. It also acquired Tropicana Gardens Mall for RM680 million in July 2024, which was then rebranded to IOI Mall Damansara.

In June 2025, it agreed to acquire the remaining 50.1% stake in the South Beach mixed-use development in Singapore for S$834.2 million (about RM2.75 billion), taking full ownership of the asset.

On April 10 this year, the group confirmed the listing of its Malaysian REIT on the Main Market of Bursa Malaysia. IOIPG Malaysia REIT will consist of retail, office and hotel assets worth a total of RM7.58 billion.

At the time of writing on Monday, shares of IOI Properties were down by seven sen or 1.8% to RM3.84.