IOIPG Malaysia REIT plans listing with RM7.66b portfolio anchored by IOI City Mall
IOI Properties Group plans to list a REIT holding nine properties valued at RM7.66 billion, with IOI City Mall accounting for about two-thirds of the portfolio. The proposed IOIPG Malaysia REIT will acquire the assets from the group for RM7.58 billion, funded through RM4.92 billion in REIT units and
PETALING JAYA (Sept 24): IOI Properties Group Bhd plans to list a real estate investment trust (REIT) holding nine properties with an aggregate appraised value of about RM7.66 billion, with IOI City Mall accounting for roughly two-thirds of the portfolio.
The proposed IOIPG Malaysia REIT will acquire the properties from IOI Properties Group subsidiaries for RM7.58 billion, according to a draft prospectus exposed for public comment on Thursday (Sept 24). The purchase price comprises RM4.92 billion in REIT units and RM2.65 billion in cash to be funded through sukuk.
IOI City Mall carries a purchase consideration of RM5.1 billion. Its updated appraised value of RM5.15 billion as at May 31, 2026, represents about 67% of the portfolio’s aggregate valuation.
The other properties are six hotels — Putrajaya Marriott Hotel, Le Méridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur and Courtyard by Marriott Penang — and two office assets, IOI City Towers and PFCC Towers. The hotels are to be leased to IOI Properties Group subsidiaries under master lease arrangements. Rent payable to the REIT will be the higher of a guaranteed amount or variable rent calculated as 90% of the relevant hotel’s net operating profit, as defined in the prospectus.
The proposed offering comprises up to 2.2 billion existing REIT units, representing 40% of the 5.5 billion units expected to be issued upon listing. Of these, 550.61 million units are reserved for entitled IOI Properties Group shareholders on the basis of one REIT unit for every 10 company shares held on a date to be announced. Another 110 million units are allocated for applications by the Malaysian public and 55 million for eligible directors, employees and business associates. Up to 1.48 billion units form the institutional offering.
Because the offering is a sale of units by IOI Properties Group, its proceeds will accrue to the sponsor rather than the REIT. The draft prospectus estimates that the REIT will bear about RM4 million in professional and advisory expenses relating to the listing and unit issuance. On a pro forma basis, the REIT expects indebtedness of about RM2.65 billion upon listing, equivalent to roughly 34% of its estimated RM7.79 billion total asset value.
The manager intends to distribute at least 90% of the REIT’s distributable income on a quarterly basis, although the prospectus gives it discretion over the amount and distribution intervals. The REIT trustee also has a right of first refusal over certain other IOI Properties Group assets, providing a potential route for future acquisitions. The offer price, application dates and listing date have yet to be stated. The prospectus has not been registered with the Securities Commission Malaysia and is exposed solely for public comment. Securities cannot be offered, or applications accepted, until it is registered.
