IOI Properties exercises call option to buy Asia Square Tower 2 for S$1.2b

IOI Properties Group has exercised its call option to acquire MVKimi, the holding company of Asia Square Tower 2, for an estimated S$1.19678 billion. The 46-storey integrated development at 12 Marina View includes offices, retail space and the Westin Singapore hotel on a master lease.

PETALING JAYA (Sept 2): IOI Properties Group Bhd (KL:IOIPG) said its wholly-owned subsidiary IOI Marina View Pte Ltd (IOIMV) has exercised its call option to acquire MVKimi (BVI) Ltd, the holding company of Asia Square Tower 2 Pte Ltd (AST 2), the registered owner of Asia Square Tower 2 in Singapore.

In a Bursa Malaysia filing on Wednesday (Sept 2), IOI Properties said all conditions precedent under the put and call option agreement (PCOA) had been satisfied, and IOIMV exercised the call option on Sept 2. The exercise means that a sale and purchase agreement (SPA) between IOIMV and HSBC Institutional Trust Services (Singapore) Ltd (HSBCITS), acting as trustee of CapitaLand Commercial Trust (CCT), is deemed to have been entered into on the same date. The acquisition remains subject to completion in accordance with the SPA.

IOIMV is acquiring the entire issued share capital of MVKimi for an estimated cash purchase consideration of S$1.19678 billion (RM3.77393 billion), subject to adjustments under the SPA. IOI Properties' July 31 circular said the consideration is based on MVKimi's adjusted net asset value as at completion.

Asia Square Tower 2 is a 46-storey integrated development at 12 Marina View in Singapore's central business district. It comprises offices, ancillary retail space and car-parking facilities on levels one to 31. The Westin Singapore occupies level 32 and above and is master-leased to Daisho Development Singapore Pte Ltd until March 1, 2107. IOI Properties' circular specifies that references to Asia Square Tower 2 in the circular exclude the hotel. The property also has underground connectivity to the Downtown and Shenton Way MRT stations.

On completion, IOIMV will also pay or procure the repayment in full of shareholder loans advanced to AST 2 by CCT and CapitaLand Integrated Commercial Trust (CICT). Based on an assumed completion date of March 31, 2026, the shareholder-loan repayment amount was estimated at S$1.27743 billion. Together with the estimated share purchase consideration, this would result in an indicative aggregate transaction value of S$2.47421 billion. The final purchase consideration and shareholder-loan repayment amount will be determined under the completion-adjustment mechanics in the SPA.

Savills Valuation and Professional Services (S) Pte Ltd valued Asia Square Tower 2 at S$2.526 billion as at April 6, 2026, about 1.98 per cent above the agreed property value of S$2.476 billion used in deriving the acquisition consideration.

IOI Properties previously said it intends to hold Asia Square Tower 2 as a long-term, income-generating investment, with a strategy centred on recurring rental income, tenant retention, lease renewals and maintaining or enhancing occupancy.