IOI Properties declines purchase of Shenton House; opts for redevelopment

IOI Properties Group Bhd has rejected the offer to acquire Singapore’s Shenton House from its CEO and major shareholder, Lee Yeow Seng.

Despite this, IOI Properties’ subsidiaries have been designated as the sole project and property managers for the property’s redevelopment.

Lee’s private entity, Shenton 101 Pte Ltd, acquired Shenton House for S$538 million (RM1.9 billion) and had proposed selling it to IOI Properties for joint redevelopment.

The decision to decline the offer was influenced by IOI Properties’ existing significant exposure to the Singapore market and other capital commitments.

IOI Properties has made several significant acquisitions over the past year, totaling RM1.205 billion, including properties from Tropicana Corp Bhd and land parcels in Langkawi.

The company’s share price closed at RM1.96 today, down 1.01%, with a market capitalisation of RM10.79 billion.