IOI Properties rides Singapore office rebound
KUALA LUMPUR: IOI Properties Group Bhd is emerging as a key beneficiary of the strengthening Singapore office market, with analysts highlighting its growing exposure to prime assets as a major driver of value creation.
IOI Properties is rapidly establishing itself as a significant commercial landlord in Singapore, following two major acquisitions in recent years - South Beach in late 2025 and Asia Square Tower 2 (AST2).
According to UBS Global Research, IOI Properties is set to deliver sustained net asset value (NAV) growth of more than two per cent per annum (p.a) with the rising Singapore office market.
UBS thinks the recent acquisition of AST2 will consolidate market share of landlords to raise their bargaining power, with IOI Properties effectively being the third largest landlord in Grade A core central business district (CBD) offices in Singapore.
"At around half of total assets and near 66 per cent of IOI Properties' NAV, we expect sustained five to 10 per cent rent reversions on 20- 33 per cent p.a renewals to drive meaningful more than two per cent p.a. accretion to NAV/share beyond 2026.
"Low interest rates, credit access and rising private equity interest should support low three per cent office cap rates," it said.
Meanwhile, DBS Research said upon completion of AST 2 acquisition, IOI Properties will see its Singapore investment property portfolio scale to nearly S$10 billion.
This includes landmark project IOI Central Boulevard Towers, valued at around S$4.2 billion, and mixed-use development South Beach Tower at around S$2.8 billion.
"Collectively, these three assets will account for more than 70 per cent of the company's investment property portfolio, cementing it as one of the largest owners of prime office assets in the CBD.
"From a funding perspective, the strengthening ringgit against the Singapore dollar alongside a low SORA environment could also serve as tailwinds for the group as it looks to diversify its business outside of Malaysia," it said in a separate note.
Overall, DBS Research said beyond immediate income from its deployment to Singapore, IOI Properties' growing footprint there also provides a strategic platform for future capital recycling, partnerships and potential monetisation pathways.
"As the group scales its presence, it enhances its ability to participate in larger transactions, drive operational synergies across assets, and establish itself as a credible long-commercial real estate landscape," it added.