IOI Properties’ RM7.6b REIT gets fund management licence approval

IOI Properties Group Bhd’s (IOIPG) proposed RM7.58 billion IOI Malaysia Real Estate Investment Trust (IOIPG REIT) has cleared another regulatory hurdle after the Securities Commission Malaysia (SC) approved the Capital Markets Services Licence application for its wholly owned unit IOI REIT Management Sdn Bhd.

The approval allows IOI REIT Management to undertake regulated fund management activities restricted to real estate investment trusts (REITs).

The SC approval, dated Aug 18, requires IOI REIT Management to fulfil several governance requirements within six months, including appointing a chief executive, licensed director, compliance officer and at least two licensed representatives.

The approval follows the SC’s clearance on Aug 6 for the establishment and proposed Main Market listing of IOIPG REIT.

The proposed REIT will comprise nine commercial and hospitality assets, including IOI City Mall, IOI City Towers, PFCC Towers and six hotels, with an estimated acquisition value of RM7.58 billion.

The acquisition consideration will comprise 5.5 billion REIT units issued at an indicative 90 sen each and RM2.65 billion in cash funded through sukuk issuance.

The proposed offering includes a retail tranche of 715.61 million units, including a non-renounceable restricted offer for sale to existing IOIPG shareholders on a one-for-10 basis, and an institutional tranche of up to 1.48 billion units.