IOI Properties to fully acquire Singapore's Scottsdale for RM2.75bil
KUALA LUMPUR: IOI Properties Group Bhd is acquiring the remaining 50.1 per cent stake in Singapore-based Scottsdale Properties Pte Ltd for S$834.22 million (RM2.75 billion).
The acquisition will be carried out via its unit, IOI Consolidated (Singapore) Pte Ltd, which currently holds a 49.9 per cent stake in Scottsdale. Upon completion, IOI Consolidated will fully own Scottsdale.
The purchase price is based on 50.1 per cent of the net assets of Scottsdale and its subsidiaries, with the South Beach property valued at S$2.75 billion (RM9.05 billion), the group said in a filing with Bursa Malaysia today.
IOI Properties paid a deposit of S$13.75 million (RM45.68 million) on May 20 and will make a second deposit of S$27.50 million (RM90.52 million) within two weeks of signing the share sale agreement. The balance will be funded through internal resources and bank borrowings.
Scottsdale owns South Beach Consortium Pte Ltd (SBC), which holds the leasehold title to South Beach Tower, South Beach Avenue and the JW Marriott Hotel Singapore South Beach — excluding the residential components.
"Completion is expected to be in the second half of 2025, or such other date as the purchaser and the vendor may mutually agree," it said.
IOI Properties said the acquisition is in line with its strategy to strengthen recurring income from investment and hospitality assets in Singapore.
"The South Beach property is a mature, income-generating asset with office, retail and hotel components. The proposed acquisition is expected to provide the group with a stable and sustainable income stream," it said.
Located in a prime area, the integrated development comprises 508,869 square feet (sq ft) of Grade-A office space, 30,797 sq ft of retail space and a 634-room JW Marriott hotel.
The group said the deal would also enhance its position as a major landlord of premium office space in Singapore, complementing its upcoming IOI Central Boulevard Towers.
Following the acquisition, IOI Properties' earnings per share is expected to rise from 37.45 sen to 46.88 sen, primarily due to a one-off revaluation gain and full earnings consolidation of the South Beach property.