IOI Properties suspends trading over reported takeover of South Beach complex from Singapore's CDL

KUALA LUMPUR (June 4): Trading in IOI Properties Group Bhd’s (KL:IOIPG) shares has been suspended pending an announcement, amid news that the company has agreed to purchase Singapore’s City Developments Ltd (CDL) 50.1% stake in the South Beach complex.

Bloomberg, quoting sources on June 4, said CDL, controlled by Singapore's wealthiest clan Kwek family, has agreed to sell its 50.1% stake in Singapore’s South Beach complex to its partner, IOI Properties, in a deal which values the property at around S$2.75 billion (US$2.1 billion or RM8.9 billion), giving IOI Properties full ownership.

Trading in IOI Properties’ shares and related structured warrants had been suspended since 10.15am on Wednesday. The counter last traded 2.11% lower at RM1.86, giving it a market capitalisation of RM10.2 billion.

Trading in CDL, listed on the Singapore Stock Exchange, has also been halted on Wednesday, pending an announcement.

CDL has been seeking to cut its debt and rebuild investor confidence following a Kwek family feud in the real estate company, according to the report.

CDL targeted S$1 billion in asset disposals in 2024, but only managed about S$600 million. The South Beach deal, if it materialises, would help the company surpass that goal this year.

For IOI Properties, the deal adds another marquee asset to its growing portfolio in Singapore, where it already owns the newly launched IOI Central Boulevard Towers in the central business district and several other high-end residential projects.

IOI Properties formed a joint venture with CDL in 2011 to develop South Beach, which now includes a 34-storey office tower, a 45-storey JW Marriott Hotel and luxury retail spaces.

Despite its premium location, South Beach has recently faced some tenant challenges. Tech giant Meta Platforms Inc vacated seven floors in the office tower last year, with occupancy dropping to 92.4% as of March 2025, from 94.4% at end-2024.