IOI Properties to take full ownership of South Beach in RM2.75b deal
IOI Properties Group Bhd is set to take full ownership of Singapore’s South Beach development by acquiring the remaining 50.1% stake from joint venture (JV) partner City Developments Ltd for S$834.2 million (RM2.75 billion).
The acquisition, executed through IOI Properties’ wholly owned unit IOI Consolidated (Singapore) Pte Ltd, is based on a 100% agreed property value of S$2.75 billion, representing a 3% premium over the latest independent valuation of S$2.67 billion as of end-2024. The transaction is expected to complete by the third quarter of 2025 (3Q25), subject to regulatory and third-party approvals.
With this deal, IOI Properties will increase its ownership in the South Beach development to 100%, from its existing 49.9% stake.
Group CEO Lee Yeow Seng described the acquisition as a major step in strengthening the group’s footprint in Singapore’s real estate market.
“The acquisition of the 100% equity stake in this landmark development marks a significant strategic expansion for IOI Properties in Singapore,” he said.
“Combined with the IOI Central Boulevard Towers and the W Singapore-Marina View hotel, this acquisition will elevate the group’s profile as one of the major landlords of premium office space and a prominent player in the hospitality industry within the republic.”
Located in the Marina Central district, South Beach is a 3.5ha mixed-use integrated development. It is directly linked to the Esplanade and City Hall Mass Rapid Transit (MRT) stations and sits on a 99-year leasehold site that commenced in December 2007, with about 81 years remaining.
As of March 2025, the office and retail components of the development recorded strong occupancy rates of 92.4% and 92.5%, respectively.
The deal will be financed via a mix of internally generated funds and borrowings. IOI Properties expects the acquisition to be earnings accretive, with its earnings per share (EPS) projected to rise from 37.45 sen to 46.88 sen for the financial year ending June 30, 2025.
This is mainly attributed to remeasurement gains on its existing stake and full consolidation of earnings from South Beach.
The group’s net gearing is expected to increase from 0.7 times to 0.93 times after the transaction is completed.
City Developments, which is exiting the JV, said the divestment aligns with its long-term capital recycling strategy.
“This strategic divestment enables City Developments to realise exceptional value, while entrusting the ownership to a partner that knows South Beach well, marking a natural evolution in our successful partnership,” said executive chairman Kwek Leng Beng.
Despite the divestment, City Developments will continue to have a strong presence in Singapore with about 2.6 million sq ft of commercial and retail space, and operations of six hotels including The St Regis Singapore and The Singapore Edition.
As at March 31, 2025, IOI Properties’ total assets stood at RM47.93 billion.
The group is positioning itself to deepen its recurring income base in mature markets like Singapore as part of its long-term growth strategy.