Latest news with #IOIProperties
Forbes
5 days ago
- Business
- Forbes
Billionaire Brothers' IOI Properties Explore Options For Singapore, Malaysia Assets
The South Beach, located in the Singapore central business district, houses the JW Marriott Hotel ... More and an office block. IOI Properties—controlled by Malaysian billionaire brothers Lee Yeow Chor and Lee Yeow Seng—is weighing its options on how it could monetize its commercial real estate in Singapore and Malaysia, worth almost $9 billion based on analyst estimates. The Kuala Lumpur-listed company has been expanding its property footprint in Singapore where it recently agreed to take full ownership of South Beach—a mixed use property housing the JW Marriott Hotel and an office tower—in a deal valuing the complex at S$2.75 billion ($2.1 billion) by acquiring the 50.1% stake of City Developments, which is controlled by billionaire Kwek Leng Beng and his family. 'With its stable cash flows and prime location, South Beach is well-positioned to anchor IOI Properties' planned asset monetization exercise via a Singapore REIT listing,' Tan Kai Shuen, an analyst at Hong Leong Investment Bank in Kuala Lumpur, wrote in a recent research note. The Singapore REIT—comprising the South Beach complex and the newly completed IOI Central Boulevard Towers in Marina Bay—could be listed by 2027 with assets worth as much as S$8 billion, Tan wrote. IOI Properties is also developing yet another Singapore landmark, a W Residences Marina View, comprising a hotel and a residential condominium. Tan said IOI Properties could separately list a Malaysian REIT with assets worth as much as 8 billion ringgit ($2.4 billion) as soon as next year. The group's assets in Malaysia include the IOI City commercial complex in Putrajaya, outside Kuala Lumpur. The flagship property comprises a shopping mall (the biggest in the country with a gross floor area of about 2.5 million square feet), office towers and hotels. The company did not confirm nor deny the listing plans for the two REITs when asked to comment on Hong Leong Investment Bank's report. 'IOI Properties Group will strategically consider and review various possibilities in regards to monetizing our assets as we look to ensure the group's sustained growth ahead, both in Malaysia and Singapore,' the company said in an emailed statement. 'We are keeping our options open for any opportunities by leveraging and optimising our position in creating additional value for our stakeholders and strengthening our diverse offerings.' With a combined net worth of $5.2 billion, the Lee brothers are among the wealthiest in Malaysia. They are the sons of the late Lee Shin Ying, who built a thriving palm oil and property business until his death in 2019. Lee Yeow Chor runs the palm oil business under separately listed IOI Corp, while his younger brother Yeow Seng helms the real estate company.
Straits Times
7 days ago
- Business
- Straits Times
Malaysia's IOI Properties targets potential Singapore Reit listing in 2027
The acquisition will give IOI Properties full ownership of South Beach, which comprises South Beach Tower (pictured), South Beach Avenue and the JW Marriott Hotel Singapore South Beach. ST PHOTO: KUA CHEE SIONG SINGAPORE - Malaysia's IOI Properties Group is planning to list a real estate investment trust (Reit) in Singapore by 2027, as part of a plan to monetise its assets and cut debt, according to a Malaysia investment bank. The Reit will include Singapore properties such as the South Beach mixed development and IOI Central Boulevard, which have an estimated combined valuation of $7 billion to $8 billion, wrote Hong Leong Investment Bank analyst Tan Kai Shuen in a June 11 report. Citing intel from a meeting with IOI Properties chief executive Lee Yeow Seng, Mr Tan noted that the Singapore Reit listing is part of a two-pronged monetisation strategy that also includes a Malaysia Reit listing targeted for mid-2026, with assets valued at RM7 billion (S$2.11 billion) to RM8 billion. Both listings are expected to improve cash flow and reduce IOI Properties' net gearing, which could rise to around 0.93 times following its recent acquisition of partner City Developments' (CDL) stake in South Beach. CDL on June 4 agreed to sell its 50.1 per cent stake in South Beach to IOI Properties for about $834.2 million in a deal valuing the complex at about $2.75 billion. It first bought the site for nearly $1.69 billion in 2007 in partnership with a unit of state-owned Dubai World Corp and El-Ad Group. The two partners later exited the project and IOI Properties took a stake in 2011. The acquisition, expected to be complete in the third quarter, will give IOI Properties full ownership of South Beach, which comprises South Beach Tower, South Beach Avenue and the JW Marriott Hotel Singapore South Beach. It is expected to be included in IOI Properties' Singapore Reit, together with IOI Central Boulevard. The flagship office property opened in 2024 in the Marina Bay area, eight years after IOI Properties put up a $2.57 billion bid for the site in a November 2016 government land sale tender. The Reit, targeted to list in 2027, is expected to help IOI Properties lighten its debt load as it expands its presence in the Singapore Central Business District, Mr Tan noted in his report. Besides South Beach and IOI Central Boulevard, IOI Properties is also the developer of Marina View, after acquiring the site for $1.5 billion in September 2021. It is now building a new mixed-use development on the site that will house a W Singapore luxury hotel as well as new branded residences. In late 2024, Mr Lee in his personal capacity also acquired Shenton House at Shenton Way for $538 million in a collective sale transaction. He told the media that the intention is to redevelop Shenton House into a mixed-use development with premier office space and luxury branded serviced residences. Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
09-06-2025
- Business
- Yahoo
Top Stock Market Highlights of the Week: City Developments Limited, GlobalFoundries and Mapletree Investments
Welcome to this week's edition of top stock market highlights. City Developments Limited, or CDL, and IOI Properties Group Berhad (KLSE: 5249) announced a share sale agreement for their joint venture South Beach mixed-use development. Under this agreement, IOI will acquire CDL's 50.1% stake in South Beach based on an agreed property value of S$2.75 billion. This value is a 3% premium over South Beach's latest valuation of S$2.67 billion as of 31 December 2024. Based on CDL's share, the sales consideration amounts to S$834.2 million. Both CDL and IOI have been joint venture partners in South Beach since 2011. The property comprises Grade A office space, a 634-room hotel, restaurants, cafes, and South Beach Residences, which consist of 190 luxury apartments and penthouses. CDL expects that the disposal will result in a gain of approximately S$465 million when the transaction is completed by the third quarter of this year. The blue-chip property group believes that this divestment represents a strategic opportunity to unlock value from South Beach and will provide it with enhanced financial flexibility to redeploy the proceeds. The sale also allows CDL to crystallise gains in the property, and proceeds will be used to reduce borrowings to improve its net gearing ratio. The cash can also be used for new acquisitions, investing in new development projects, or to optimise its capital management. Such divestments remain a key pillar of CDL's strategy and involve capital recycling activities that promise to unlock value for its shareholders. GlobalFoundries is the latest company to announce plans to spend money to bolster its US production. The Malta-based company manufactures essential chips for semiconductors and electronics makers that handle vital but mundane tasks such as controlling power and managing the flow of data inside devices. The artificial intelligence (AI) boom increased demand for a variety of chips, boosting the need for power-efficient chips used in data centres and communication equipment. GlobalFoundries, which is majority-owned by the government of Abu Dhabi, will commit US$13 billion to expand its existing plants in New York and Vermont. The company will also make a US$3 billion spending commitment to research into advanced packaging and other technologies in the US. However, CEO Tim Breen did not give a specific timeline on when this amount will be spent, citing the company's need to be flexible in managing the supply-demand balance. The investment is driven by higher demand from chip customers who are seeking more local production in an attempt to reduce reliance on suppliers that are concentrated in just one location. This diversification is a direct effect of Trump's tariff announcement as companies seek to rejig or re-adjust their supply chains to avoid paying higher taxes. Mapletree Investments Pte Ltd, or MIPL, reported a strong turnaround for its fiscal 2025 (FY2025) ending 31 March 2025. The investment firm announced a net profit of S$227.2 million, reversing the net loss of S$577.2 million in FY2024, largely due to revaluation losses. Recurring net profit, however, fell by close to 11% year on year to S$637.4 million. MIPL's FY2025 revenue stood at S$2.2 billion, lower than the prior year's S$2.8 billion, because of the deconsolidation of Mapletree Logistics Trust (SGX: M44U). Despite the lower core net profit, the investment company's assets under management (AUM) grew from S$77.5 billion to end FY2025 at S$80.3 billion. The increase was due to a larger number of acquisitions and development projects. The company acquired Derby DC1 and Verda Park in the UK, marking its first foray into the country. MIPL also purchased a portfolio of 10 logistics assets in Spain. Meanwhile, the firm is also marketing its Mapletree Emerging Growth Asia Logistics Development Fund, which focuses on Malaysia, India, and Vietnam. This fund, which is targeted to close this year, will comprise development assets with AUM of up to US$1.8 billion. MIPL is also the fourth-largest student housing owner in the UK, rising from seventh place last year. The group owns 30,000 student beds in the UK and the US. Another area of growth is data centres, with MIPL set to complete the construction of its first data centre development in Hong Kong in the second half of this year. It is also exploring acquisition opportunities in locations such as London, Milan, Madrid, Japan, and South Korea. As it builds up its data centre portfolio, there is a chance that these assets could be injected into Mapletree Industrial Trust (SGX: ME8U), another REIT that MIPL sponsors. We've found 5 SGX-listed dividend stocks with strong track records in turbulent markets. If you want consistency in an uncertain world, start here. Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses! Disclosure: Royston Yang owns shares of Mapletree Industrial Trust. The post Top Stock Market Highlights of the Week: City Developments Limited, GlobalFoundries and Mapletree Investments appeared first on The Smart Investor.
Time of India
05-06-2025
- Business
- Time of India
Singapore's City Developments to sell office complex stake for $646 million
BENGALURU: Singapore-listed City Developments Ltd said on Wednesday that it will sell its entire 50.1% stake in one of its office complexes in the city-state to Malaysia's IOI Properties for S$834.2 million ($646.37 million). The South Beach complex in a central business district in Singapore includes retail space, a 34-storey office tower, and a 45-storey building housing a JW Marriott Hotel. Upon completion of the deal, expected by the third quarter of the year, IOI Properties will become the sole owner of the commercial components of the South Beach complex, City Developments said in a statement. The deal valued the complex, in which City Developments and IOI have been joint venture partners since 2011, at S$2.75 billion. "This transaction gives a strong boost to CDL's efforts to accelerate capital recycling so as to reduce gearing and redeploy capital," City Developments' CEO Sherman Kwek said. City Developments, one of Singapore's largest property developers, was embroiled in a boardroom tussle earlier this year when its executive chairman, Kwek Leng Beng, accused his son, Sherman Kwek, the company's CEO, of plotting a boardroom coup. However, in March, the company said the executive chairman dropped the lawsuit against his son while adding that both the father and son will remain in their roles. Shares of City Developments rose around 1.6% in early trade before going on a halt. IOI shares were also halted for trade. The shares are expected to resume trading soon.
New Straits Times
05-06-2025
- Business
- New Straits Times
IOI Properties' Singapore expansion to drive 9pct earnings uplift in FY26
KUALA LUMPUR: IOI Properties Group Bhd's plan to acquire the remaining 50.1 per cent stake in Singapore-based Scottsdale Properties Pte Ltd is expected to deliver a meaningful earnings uplift and enhance its strategic presence in the city-state. Hong Leong Investment Bank Bhd (HLIB) said the acquisition could contribute an earnings uplift of RM89.5 million or 1.63 sen in earnings per share (EPS) in calendar year 2026 (CY26), representing nearly nine per cent of projected financial year 2026 (FY26) earnings. "Post-acquisition, net gearing is estimated to rise to 0.93 times from 0.70 times as at June 30, 2024," it said in a note. Yesterday, IOI Properties announced it is acquiring the remaining stake in South Beach development for S$834 million (RM2.75 billion), taking full ownership of the Grade A office, JW Marriott Hotel, and its retail component. HLIB said the group's higher gearing remains manageable given its stable recurring income, strong assets, and upcoming real estate investment trust (REIT) listing plan. The firm also noted that the acquisition involves operational, cash-generating assets unlike previous deals such as IOI Central Boulevard and Marina View, which locked in capital for several years before yielding returns. "As such, we expect the steady income streams from the South Beach development to sufficiently cover interest obligations, supporting a healthier debt servicing profile," it said. HLIB has maintained its "Buy" rating for the group with an unchanged target price of RM4.05. The firm said IOI Properties offers investors a rare diversified market exposure, anchored by its strategic presence in Singapore's resilient and high-value real estate market. It also holds a deep-rooted position in Malaysia's property sector, which is undergoing a structural uplift driven by economic reforms, infrastructure push, and industrial expansion. "This diversified footprint provides both defensive stability and growth opportunity, reinforcing IOI Properties' position as a compelling proxy for long-term property sector upside across the region," it added.
