IOI Properties gets SC nod for RM7.58b REIT listing
KUALA LUMPUR (Aug 7): IOI Properties Group Bhd (KL:IOIPG) has secured the Securities Commission Malaysia’s (SC) approval to establish and list its real estate investment trust (REIT), which will house RM7.58 billion worth of the property developer’s retail, office and hotel assets.
The proposed IOIPG Malaysia REIT will debut with an initial fund size of 5.5 billion units and be listed on the Main Market of Bursa Malaysia, according to the group’s filing on Friday.
The REIT will acquire nine properties from IOI Properties subsidiaries for a combined RM7.58 billion, anchored by the IOI City Mall, which is valued at RM5.1 billion and accounts for about two-thirds of the portfolio acquisition value.
Other assets include the IOI City Towers and PFCC Towers, as well as six hotels — Putrajaya Marriott Hotel, Le’ Meridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur and Courtyard by Marriott Penang.
The RM7.58 billion acquisition will be satisfied through the issuance of 5.5 billion units at 90 sen each, alongside RM2.65 billion in cash to be funded through sukuk issuance.
As part of the proposed offering, 715.61 million units will be offered under the retail portion, including 550.61 million units through a restricted offer for sale to existing IOI Properties shareholders.
Eligible shareholders will be entitled to one REIT unit for every ten IOI Properties shares held on an entitlement date to be announced later. Another 55 million units will be allocated to eligible persons, while 110 million units will be made available to the Malaysian public.
The institutional offering, meanwhile, will comprise up to 1.48 billion units, including 687.5 million units for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), with up to 796.89 million units allocated to other Malaysian and foreign institutional and selected investors.
The SC's approval is subject to several conditions, including the allocation of units equivalent to 12.5% of the REIT's enlarged issued units to Bumiputera investors approved by Miti.
IOI REIT Management Sdn Bhd, which will manage the REIT, is also required to obtain the SC's approval for a fund management licence restricted to REITs and submit an operational audit report within six months after the listing.
Shares of IOI Properties closed up 12 sen or 3.1% to RM3.98 on Friday, valuing the company at RM21.9 billion.