IOI Properties eyes up to RM2 bil from Reit listing backed by RM7.6 bil portfolio

Bursa Malaysia-listed real estate conglomerate IOI Properties Group has announced plans to establish a Reit backed by a portfolio of its Malaysian retail, hotel and office properties, including IOI City Mall, W Kuala Lumpur, Putrajaya Marriott Hotel, and Le Méridien Putrajaya.

In an April 10 bourse filing, the group says the portfolio will be injected into IOIPG Malaysia Real Estate Investment Trust (IOIPG Reit) at a disposal consideration of $7.58 billion ($2.44 billion), which will be satisfied via the issuance of 5.5 billion units in the Reit at an indicative issue price of 90 sen per share, alongside RM2.65 billion in cash.

Other assets that will be injected include hotel properties Moxy Putrajaya, Four Points by Sheraton Puchong, Courtyard by Marriott Penang, along with office assets IOI City Towers and Puchong Financial Corporate Centre. In conjunction with the disposal, the hotel assets will be leased back to IOI Properties-related companies on a long-term basis.

The group plans to list IOIPG Reit on the Main Market of Bursa Malaysia, with up to 2.2 billion units to be offered to public and institutional investors, representing up to 40% of the Reit’s total issued units of 5.5 billion. The remaining 60% will be retained by IOI Properties.

At the indicative price of 90 sen per share, the proposed listing could raise around RM1.98 billion. Together with the cash consideration from the injection of the properties, IOI Properties is estimating proceeds from the disposal of assets and the proposed offering to total around RM4.6 billion.

Of this figure, around RM3 billion will be used to pare down debt, while another $1.55 billion will go towards project development and property investment expenditures, the group states in its filing.

The proposals are subject to shareholder and regulatory approvals. IOI Properties is targeting the completion of the various transactions by 4Q2026.