IOI Properties Launches Malaysian REIT with $1.9 Billion in Assets

IOI Properties Group has announced its plans to list a Malaysian real estate investment trust (REIT) seeded with a diverse portfolio of retail, office, and hotel assets. According to a stock exchange filing, the total value of these assets is estimated at about 7.58 billion ringgit, which is approximately $1.9 billion.

The proposed Malaysian REIT is initially set to have a size of 5.5 billion units, with IOI Properties offering up to 2.2 billion units to the public. The listing is targeted for completion in the fourth quarter of 2026, aligning with the company's strategic plans to capitalize on the growing real estate market in Malaysia.

Reuters first reported in November that IOI Properties was exploring REIT listings in both Malaysia and Singapore, with a combined asset value of up to $8 billion. At the time, the Malaysian REIT was expected to hold domestic assets worth about 7 billion to 8 billion ringgit. The current announcement confirms the company's commitment to this ambitious plan.

At an indicative price of 90 sen per unit, the initial public offering (IPO) could raise about 1.97 billion ringgit. The gross proceeds from the disposals and offering are projected to total about 4.62 billion ringgit. IOI Properties plans to use the majority of these funds to repay borrowings and finance project and property investments.

The assets earmarked for injection into the REIT include several high-profile properties such as IOI City Mall, IOI City Towers, PFCC Towers, Putrajaya Marriott, Le Meridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur, and Courtyard by Marriott Penang. These properties are strategically located and are expected to generate consistent returns for REIT investors.

Maybank Investment Bank and AmInvestment Bank have been appointed as joint principal advisers for the REIT listing, while DBS will serve as a joint global coordinator and underwriter. This team of financial institutions brings a wealth of experience and expertise to the project, ensuring a smooth and successful listing process.

The launch of the Malaysian REIT is a significant step for IOI Properties, marking the company's continued growth and diversification in the real estate sector. By leveraging the strengths of its existing portfolio, IOI Properties aims to create value for both its shareholders and the broader real estate market in Malaysia.