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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
09-06-2025
- Business
- Straits Times
CDL pops after selling South Beach stake to Malaysians; SIA Engineering hits five-year high
CDL's share price rose 8.5 per cent over the week to close at $5.25 on June 6. PHOTO: ST FILE SINGAPORE – City Developments Limited (CDL) popped last week, after it announced it will sell its 50.1 per cent stake in the South Beach mixed project to its Malaysian partner's IOI Properties Group for about $834.2 million. The transaction is expected to result in a gain on disposal of about $465 million for the financial year ending Dec 31, 2025, which will be used to reduce bank borrowings and lower its debt, CDL said on June 4. The company had said in 2024 that it aimed to divest $1 billion in assets, and has announced about $600 million in divestments so far. CDL's share price, which had declined following a public dispute between executive chairman Kwek Leng Beng and his son, chief executive Sherman Kwek, over control of the company's board, rose 8.5 per cent over the week to close at $5.25 on June 6. SIA Engineering hit a five-year high of $2.98 on June 6, outperforming its average target price of $2.71 as investors ploughed into the stock. The aircraft maintenance provider has been a favourite stock pick among analysts, who have begun identifying companies that could benefit from an expected capital infusion into local stocks before the end of the year. As part of an effort to revive the stock market, the Monetary Authority of Singapore will be allocating $5 billion in seed capital to Singapore-based funds for investing in local stocks, and expects to shortlist suitable investment strategies by end-September. Analysts reckon the funds will likely be deployed before the end of 2025. SIA Engineering rose 8.5 per cent through to the week, and closed on June 6 at $2.94. Great Eastern to address share trading suspension Great Eastern Holdings on June 6 finally announced that minority shareholders will be able to vote on the delisting of the insurance company or a resumption of trading, nine months after its shares were suspended from trading on the Singapore Exchange (SGX) due to an insufficient public float of less than 10 per cent. If shareholders vote in favour of delisting, major shareholder OCBC Bank will make a final exit offer of $30.15 per share, valuing the remaining 6.28 per cent it does not own at $900 million. This revised offer represents a 17.8 per cent premium over OCBC's initial offer of $25.60 per share in May 2024. Independent financial adviser (IFA) Ernst & Young has assessed the new offer as fair and reasonable, after previously finding the earlier offer unfair but reasonable. The delisting decision will be made solely by minority shareholders, as OCBC – which already owns 93.72 per cent – will abstain from voting. The proposal requires at least 75 per cent approval at the upcoming extraordinary general meeting. Of the 6.28 per cent of shares that OCBC currently does not own, two prominent shareholder families – the Lees and the Wongs – own a combined 3 per cent. In January, it was reported that OCBC CEO Helen Wong had met them to persuade them to accept the earlier offer, though those efforts were reportedly unsuccessful. The Lee family, which has ties to OCBC's founding, is expected by some to support the delisting. However, if the Wongs choose not to vote in favour, the resolution would require unanimous support from the Lees and the rest of the minority shareholders to pass. If the delisting vote fails, shareholders will then vote on whether to resume trading of Great Eastern's shares. This resolution also requires 75 per cent approval. OCBC will be able to vote on this resolution. Under the trading resumption plan, Great Eastern will carry out a one-for-one bonus issue, giving shareholders a choice of receiving either regular voting shares or Class C non-voting shares. OCBC has indicated that if the delisting does not go through, it will vote in favour of the trading resumption and choose to receive Class C shares, at Great Eastern's request. This move would reduce OCBC's voting stake from 93.72 per cent to 88.19 per cent, restoring the minimum public float required for trading to resume. OCBC has also stated that if the delisting fails and trading resumes, it has no intention of making another offer for the remaining shares. Some analysts view the revised offer positively, noting that it is now considered fair, is in line with peer valuation multiples and offers a 17.8 per cent premium over the earlier bid. However, they also caution that if trading resumes, liquidity in Great Eastern shares is likely to be limited due to OCBC's more concentrated shareholding in the company. Other market movers Units of Keppel DC Real Estate Investment Trust (Reit) rose 2.3 per cent to $2.24 on June 6, after it was announced that the Reit will replace Hong Kong-based conglomerate Jardine Cycle & Carriage on the Straits Times Index (STI), following a quarterly review. The move, which will take effect on June 23, increases the total number of Singapore Reits on the index to eight, and is expected to increase their combined weight in the index to more than 10 per cent. Internet service provider NetLink NBN Trust will replace Keppel DC Reit on the STI's reserve list. The other four companies on the reserve list are CapitaLand Ascott Trust, ComfortDelGro, Keppel Reit and Suntec Reit. Oiltek International, a provider of vegetable oil processing technology, jumped by more than 9 per cent to 60.5 cents on June 6, when it successfully transferred its listing from the Catalist to the SGX mainboard. The company first listed in March 2022 at 23 cents per share. CEO Henry Yong said the move will enable Oiltek to gain greater visibility, liquidity and access to capital. Oiltek International jumped by more than 9 per cent to 61 cents on June 6, when it successfully transferred its listing from Catalist to the SGX mainboard. PHOTO: OILTEK Ms Lee Khai Yinn, a partner at SAC Capital, which was Oiltek's former sponsor, said the company's move to the mainboard is an example of how the Catalist can serve as a platform for emerging firms to scale and succeed. Shares of Singapore Paincare Holdings rallied last week after the Securities Investors Association (Singapore), or Sias, noted that a privatisation offer of 16 cents on May 27 undervalues the stock. Sias noted that Singapore Paincare was listed at 22 cents per share at a premium to its unaudited net asset value per share in July 2020 during Covid-19, when valuations were depressed and the STI was trading at around 2,500. It pointed out that the company should now be valued at a similar premium, at around 36 cents to 37 cents, given that the STI is trading at around 3,900, and 'well-managed healthcare companies generally trade at premiums to their net asset value'. In any case, minority shareholders of Singapore Paincare should wait for a report to be released by an appointed IFA before selling their shares on the open market, said Sias. Shareholders who do sell on the open market will not have recourse if the privatisation offer price is subsequently revised upwards, Sias added. It also reminded shareholders that 'for a delisting to take place, the IFA has to conclude that the offer is both fair and reasonable'. The Catalist-listed counter closed on June 6 at 17.4 cents, up 11.5 per cent through the week. What to look out for this week All eyes will be on US consumer price index data for the month of May, which will be released on June 11. US consumers probably saw slightly faster inflation in May, notably for merchandise, as companies gradually pass along higher import duties, Bloomberg quoted analysts as saying. Despite US President Donald Trump's efforts to pressure the Federal Reserve into quickly lowering interest rates, Fed chairman Jerome Powell has indicated they have time to assess the impact of trade policy on the economy, inflation and jobs market. Join ST's Telegram channel and get the latest breaking news delivered to you.
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.
Malaysian Reserve
04-06-2025
- Business
- Malaysian Reserve
IOI Properties to take full ownership of South Beach in RM2.75b deal
IOI Properties Group Bhd (IOIPG) is acquiring the remaining 50.1% stake in Singapore's South Beach development from joint venture partner City Developments Ltd (CDL) for S$834.2 million (approximately RM2.75 billion), bringing its ownership to 100%. The deal, executed via IOIPG's wholly owned unit IOI Consolidated (Singapore) Pte Ltd, is based on an agreed property value of S$2.75 billion, a 3% premium over its last independent valuation of S$2.67 billion as at end-2024. Completion is expected by the third quarter of 2025, subject to approvals. 'The acquisition of the 100% equity stake in this landmark development marks a significant strategic expansion for IOIPG in Singapore,' said IOIPG group CEO Lee Yeow Seng. '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,' he added. South Beach is a 3.5-hectare mixed-use development directly linked to Esplanade and City Hall MRT stations, with about 81 years remaining on its 99-year lease. As at March 2025, its office and retail segments had occupancy rates of 92.4% and 92.5%, respectively. The acquisition will be funded via a mix of internal funds and borrowings. IOIPG expects EPS to rise from 37.45 sen to 46.88 sen for FY2025, driven by remeasurement gains and full earnings consolidation. Net gearing is projected to increase from 0.70x to 0.93x post-completion. CDL, which is divesting its stake, said the move supports its capital recycling strategy. 'This strategic divestment enables CDL 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 CDL executive chairman Kwek Leng Beng. CDL retains about 2.6 million sq ft of commercial and retail space in Singapore and continues to operate six hotels, including The St. Regis Singapore and The Singapore EDITION. IOIPG's total assets now stand at RM47.93 billion as at March 31, 2025. — TMR
Forbes
04-06-2025
- Business
- Forbes
Billionaire Kwek Family's CDL Sells Stake In Singapore's South Beach To Malaysia's IOI Properties
The South Beach, located in the Singapore central business district, houses the JW Marriott Hotel ... More and an office block. City Developments Ltd. (CDL)—controlled by billionaire Kwek Leng Beng and his family—has agreed to sell a majority stake in a mixed used office, hotel and residential complex in the Singapore central business district to its Malaysian partner, IOI Properties. Under the deal, IOI Properties—controlled by controlled by Malaysian billionaire brothers Lee Yeow Chor and Lee Yeow Seng, whose family made their fortune from palm oil—will buy CDL's 50.1% stake in South Beach in a deal valuing the the property at S$2.75 billion ($2.1 billion), according to a joint statement from the partners. Upon completion of the deal in the third quarter of this year, IOI Properties will fully own the commercial property, comprising the JW Marriott Hotel in a 45-story skyscraper, a 34-story office tower and retail space. The 190-unit South Beach Residences has been fully sold since September 2021. 'The acquisition of the 100% equity stake in this landmark development marks a significant strategic expansion for IOI Properties,' Lee Yeow Seng, group CEO of IOI Properties, said in the statement. IOI Properties has been expanding its portfolio in Singapore. It recently opened the IOI Central Boulevard Towers in Marina Bay. Built at a cost of about S$4 billion (including the land cost), the complex comprises a seven-story podium, a 16-story tower and a 48-story skyscraper. Nearby, the company is developing yet another landmark, a W Residences Marina View, comprising a hotel and a residential condominium. 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. For City Developments, the divestment of its stake in South Beach would help the company pare down its debts, which has eroded its bottomline. CDL's net profit slumped 37% to S$201 million in 2024 amid weaker contributions from property development and increased finance charges. Sherman Kwek, group CEO of CDL, said proceeds from the divestment will help reduce the company's gearing and redeploy capital. The company has been selectively developing new residential projects in Singapore amid softening demand. City Developments this week submitted the highest bid of S$608 million for a residential plot in the western Singapore suburb of Jurong. It plans to build five 16-story residential blocks with a total of 575 units on the site, which sits right next to the Lakeside MRT station. 'We look forward to creating a vibrant residential community that complements the ongoing transformation of the Jurong Lake District into a vibrant lifestyle and commercial hub, aligned with Singapore's broader decentralisation strategy and future growth corridors,' Sherman Kwek said in a separate statement.
