IOI Properties signs REIT IPO underwriting; bids for One Raffles Place in Singapore
IOI Properties Group has signed an underwriting agreement for 165 million offer units in the proposed IOIPG Malaysia REIT IPO. Separately, the group has submitted a joint expression of interest with a CapitaLand-managed entity to acquire One Raffles Place in Singapore on a 50:50 basis.
PETALING JAYA (Oct 12): IOI Properties Group Bhd (IOIPG), its REIT manager and trustee have signed an underwriting agreement with six underwriters for 165 million offer units under the proposed initial public offering of IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT). In a Bursa Malaysia filing on Monday (Oct 12), IOIPG said the agreement was entered into on Oct 12 by IOIPG REIT Management Sdn Bhd (IRMSB), the REIT’s manager; IOIPG, its sponsor; and MTrustee Bhd, its trustee, acting on behalf of IOIPG REIT, together with the underwriters. The agreement covers units under the public offering and restricted pink form offering, subject to clawback and reallocation provisions.
The underwriters are Maybank Investment Bank Bhd, AmInvestment Bank Bhd, CIMB Investment Bank Bhd, Hong Leong Investment Bank Bhd, RHB Investment Bank Bhd and UOB Kay Hian (M) Sdn Bhd. The agreement forms part of IOIPG’s proposals involving the REIT’s establishment, property disposals, unit offering, listing and related leases.
Separately, IOIPG said its wholly owned subsidiary and an investment entity managed by CapitaLand Investment Ltd have jointly submitted an expression of interest to acquire a 100% interest in One Raffles Place in Singapore on a 50:50 basis. The purchasers are conducting due diligence and holding exclusive discussions with the vendors to agree on mutually acceptable terms for the proposed transaction. They are working towards agreeing on definitive agreements and related transaction and completion documents, subject to satisfactory completion of due diligence during the exclusivity period. The filing did not disclose a proposed acquisition price.
Based on information made available to IOIPG, the integrated commercial development at One Raffles Place comprises two office towers and a retail podium. Tower 1 is a 62-storey office building with rooftop retail, completed in 1986, with an 841-year tenure commencing on Nov 1, 1985. Tower 2 is a 38-storey office building with ancillary retail and one basement level, completed in 2012. Its 99-year tenure commenced on May 26, 1983. The five-storey retail podium, which has one basement level, was completed in 1986. Most of it occupies land with a 99-year tenure commencing on Nov 1, 1985.
IOIPG said it would announce material developments, including the signing of any definitive agreements. Further transaction details and any requisite approvals would be disclosed at the appropriate stage under Bursa Malaysia’s Main Market Listing Requirements.
The One Raffles Place proposal follows IOIPG’s Oct 1 announcement of a conditional agreement for its wholly owned subsidiary, Boulevard View Pte Ltd, to acquire Shenton 101 Pte Ltd, the owner of Singapore’s Shenton House, from group chief executive officer and major shareholder Datuk Lee Yeow Seng. The related-party transaction carries a nominal share purchase consideration of S$1, alongside an obligation to settle or procure the settlement of all outstanding shareholder advances owed by Shenton 101 to Lee at completion. The advances stood at approximately S$217.06 million, equivalent to RM696.43 million at the filing’s exchange rate, as at July 31, 2026. The final repayment amount will depend on the advances outstanding at completion. Shenton House is a 25-storey commercial development at 3 Shenton Way. The proposed acquisition of its owner remains subject to conditions precedent and is expected to be completed in the fourth quarter of 2026.
