IOI Properties proposes REIT listing with total assets valued at RM7.58b, seeks to raise up to RM2b

KUALA LUMPUR (April 10): IOI Properties Group BHd (KL:IOIPG) announced on Friday the proposed establishment and listing of a real estate investment trust (REIT) comprising retail, office and hotel assets worth a total of RM7.58 billion.

In a bourse filing, the group outlined plans to inject a portfolio of Malaysian properties — including IOI City Mall and IOI City Park — into the proposed trust, IOIPG Malaysia REIT (IOIPG REIT), which will be listed on Bursa Malaysia's Main Market with an initial fund size of 5.5 billion units.

The Edge had reported in June 2025 that IOI Properties was considering the establishment of a REIT as a way to reduce debt from past acquisitions.  On Aug 26 last year, the group announced the incorporation of a subsidiary, IOIPG REIT Management Sdn Bhd, to serve as the management company for the proposed REIT.

On Friday, IOI Properties said the exercise is expected to be completed by the fourth quarter of 2026, subject to approvals from the Securities Commission Malaysia (SC), Bursa Malaysia, Ministry of Investment, Trade and Industry (Miti) and shareholders.

It will be structured under a trust deed lodged with the SC and will invest mainly in income-generating Malaysian properties across retail, commercial, office and hospitality segments, as well as other permitted assets under REIT guidelines, the group said.

The group said the injection of retail, office and hotel assets into the REIT will be satisfied via the issuance of 5.5 billion units at an indicative price of 90 sen each, and RM2.65 billion cash.

The group said the RM2.65 billion cash portion will be financed via borrowings raised at the REIT level through a medium-term note programme.

After the asset injection, IOIPG plans to offer up to 2.2 billion units or 40% of the REIT to investors through a mix of retail and institutional placements.

The offering could raise about RM2 billion, based on the 90 sen indicative price, while the REIT will also take on RM2.65 billion of debt as part of the asset injection structure.

The retail tranche includes allocations for existing shareholders, employees and the public, including a Bumiputera portion. The institutional tranche will be offered to selected investors, including Bumiputera investors approved by Miti.

Pricing for the units will be determined closer to listing through a bookbuilding process for institutional investors, says IOI Properties, with the retail price ultimately set at the lower-end of the retail and institutional price.

Several hotel assets will be leased back to IOI Properties-related companies under long-term arrangements once the transaction is completed.

Proceeds from the exercise will be funnelled towards IOI Properties and are expected to be used mainly to repay borrowings, fund development and investment activities, and cover transaction-related expenses, said the group.

Maybank Investment Bank Bhd and AmInvestment Bank Bhd are acting as joint principal advisers, joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters for the proposed REIT. Meanwhile, DBS Bank Ltd is joint global coordinator and joint bookrunner, and Knight Frank is the independent property valuer.

The manager, IOIPG Reit Management, has an issued share capital of RM1 million. Its directors include IOI Properties group CEO Datuk Lee Yeow Seng and Datuk Ong Eng Bin, who sits on the board of Paramount Corp Bhd (KL:PARAMON).

MTrustee Bhd, a trust company registered under the Trust Companies Act 1949, is the proposed trustee, with Rockwills International Bhd its ultimate holding company. Henry Butcher Malaysia (Mont Kiara) Sdn Bhd is the proposed property manager for the retail and office properties.

For the second quarter ended Dec 31, 2025, IOI Properties booked a net profit of RM708.84 million compared with RM94.78 million a year earlier. Revenue rose to RM1.04 billion from RM729.0 million.

Shares of IOI Properties were up by 21 sen or 6.14% to RM3.63 on Friday, valuing the group at just under RM20 billion. Over the past year, the counter has been up by 108.9%.