IOI Properties to buy Shenton House owner from CEO in S$217m deal
IOI Properties Group has proposed acquiring Shenton 101, owner of Singapore's Shenton House, from group CEO Datuk Lee Yeow Seng for S$217.06 million. The deal includes repayment of shareholder advances and paves the way for a S$1.61 billion redevelopment.
PETALING JAYA (Oct 2): IOI Properties Group Bhd (IOIPG) has proposed acquiring the company that owns Singapore’s Shenton House from its group CEO and major shareholder Datuk Lee Yeow Seng, in a related-party transaction requiring repayment of shareholder advances of approximately S$217.06 million (RM696.43 million) as at July 31, 2026.
The acquisition would give the group ownership of a Singapore central business district site earmarked for an office, retail and hotel redevelopment with an estimated gross development value (GDV) of S$1.61 billion.
In a Bursa Malaysia filing on Thursday (Oct 1), IOIPG said its wholly-owned subsidiary Boulevard View Pte Ltd had signed a conditional share sale and purchase agreement with Lee and Shenton 101 Pte Ltd to acquire the latter’s sole ordinary share, representing its entire issued share capital, for S$1. In addition to the nominal share price, Boulevard View must, on behalf of Shenton 101, fully settle or procure the settlement of all outstanding shareholder advances owed to Lee at completion.
Based on the July 31 balance, the illustrative aggregate transaction value would be approximately S$217.06 million. The final repayment may be higher if Lee makes further advances before the shareholder-advances statement is agreed. Under the agreement, Lee must ensure that the balance remains unchanged from the statement date through completion. Following repayment, the amount will become a loan owed by Shenton 101 to Boulevard View. IOIPG said the share consideration and repayment would be funded through internally generated funds.
Shenton 101 also had borrowings of approximately S$376.23 million as at July 31. Its liabilities, including those borrowings, will be consolidated into IOIPG’s financial statements upon completion. IOIPG said the transaction was structured for Lee to recover his original investment and outstanding advances without deriving a gain. The advances are interest-free.
Shenton 101 acquired Shenton House through a collective sale for S$538 million, completing the purchase in June 2024. The existing 25-storey commercial development at 3 Shenton Way sits on a site of approximately 3,377 sq m. Its current 99-year lease began on June 2, 1969. Under Singapore’s CBD Incentive Scheme, the site is eligible for a 25% bonus gross floor area, up to a maximum gross plot ratio of 14.0, for commercial and/or hotel redevelopment.
Subject to the requisite approvals, the planned redevelopment is expected to comprise a 35-storey tower with three carpark levels, 12 floors of Grade-A offices, a 10-storey luxury hotel with 165 rooms, sky terraces, restaurants and a swimming pool, as well as one basement level. The proposed office, retail and hotel development would have approximately 393,185 sq ft of net lettable area. Redevelopment costs are estimated at S$973.65 million, including construction, professional fees, contingency allowances, financing costs, the land betterment charge and lease renewal premium.
IOIPG said actual costs may vary as written planning permission remains outstanding, with the final amount depending on factors including the development plan, project timing, construction costs and financing costs. The underlying land tenure is expected to be renewed to a fresh 99-year lease, subject to payment of the applicable premium. Singapore’s Urban Redevelopment Authority granted provisional permission on June 8, 2026, but written permission remains outstanding. Construction is expected to begin in the first half of 2027 and finish in the fourth quarter of 2031, subject to the requisite approvals.
Savills valued Shenton House as a redevelopment site at S$585 million as at Aug 15, 2026, after deducting the land betterment charge and lease renewal premium. IOIPG declined an earlier acquisition proposal in August 2024, citing ongoing capital commitments. The group said its circumstances had since changed. IOI Central Boulevard Towers has achieved committed occupancy of more than 95% and is self-sustaining in terms of debt servicing. It has also completed the acquisition of the remaining 50.1% stake in Scottsdale Properties Pte Ltd, which owns the South Beach properties, and the acquisition of MVKimi (BVI) Ltd, which owns Asia Square Tower 2.
IOIPG currently manages Shenton House and its redevelopment through subsidiaries but has no economic interest in the property. It said the acquisition would allow it to benefit from potential future profits and capital appreciation, while coordinating the redevelopment with nearby holdings. The related-party transaction does not require approval from IOIPG’s non-interested shareholders. Lee and Datuk Lee Yeow Chor, who is also deemed interested, have abstained and will continue to abstain from board deliberations and voting on the proposal.
IOIPG voluntarily appointed Affin Hwang Investment Bank Bhd as independent adviser. Its audit committee said the proposal was fair, reasonable, on normal commercial terms and not detrimental to non-interested shareholders. In an illustrative pro forma calculation based on IOIPG’s June 30, 2025 accounts, adjusted for subsequent events and the proposed IOIPG REIT transactions, the acquisition would raise gross gearing from 1.29 times to 1.33 times and net gearing from 1.03 times to 1.10 times. Net assets per share would remain at RM4.74.
Completion is targeted for the fourth quarter of 2026. Conditions include Bank Negara Malaysia approval for investment in foreign-currency assets beyond the permissible limit, lender consents, a waiver of the right of first refusal held by Multi Wealth (Singapore) Pte Ltd and its related companies, and Singapore Land Authority consent for the proposed redevelopment.
