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IOI Properties Group has announced plans to establish and list a Malaysian real estate investment trust backed by a diversified portfolio of retail, office and hospitality assets valued at approximately 7.58 billion ringgit (USD 1.9 billion). The proposed REIT, expected to launch by the fourth quarter of 2026, will comprise prominent assets including IOI City Mall and multiple hotel properties. The offering could raise nearly 1.97 billion ringgit through an initial public offering of units, with total proceeds estimated at 4.62 billion ringgit. The company intends to utilise funds primarily for debt repayment and ongoing investments, aligning with earlier plans to explore dual REIT listings in Malaysia and Singapore.
IOI Properties Group announced in a stock exchange filing late on Friday that it is planning to launch a Malaysian real estate investment trust (REIT) comprising retail, office and hospitality assets valued at approximately 7.58 billion ringgit (USD 1.9 billion), with the listing targeted for completion in the fourth quarter of 2026. Advertisement
The proposed REIT will be seeded with a portfolio of established assets, including IOI City Mall, IOI City Towers and PFCC Towers, along with several hospitality properties such as Putrajaya Marriott, Le Meridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur and Courtyard by Marriott Penang. The inclusion of these assets reflects a mix of income-generating commercial and hotel properties located across key Malaysian urban centres.
According to the filing, the REIT will have an initial size of 5.5 billion units, of which IOI Properties plans to offer up to 2.2 billion units to investors. Based on an indicative price of 90 sen per unit, the initial public offering is expected to raise approximately 1.97 billion ringgit. The company further indicated that total gross proceeds from the offering and related disposals could reach around 4.62 billion ringgit.
The proceeds are proposed to be deployed primarily towards the repayment of existing borrowings, alongside funding ongoing project developments and future property investments. This capital recycling strategy is consistent with REIT-led monetisation approaches adopted by regional developers to unlock value from stabilised assets while strengthening balance sheets.
The announcement follows earlier reports in the past year indicating that IOI Properties had been evaluating REIT listings in both Malaysia and Singapore, with a combined potential asset value of up to USD 8 billion. At the time, the Malaysian portfolio under consideration was estimated to be within the range of 7 billion to 8 billion ringgit, broadly aligning with the current proposal.
The company has appointed Maybank Investment Bank and AmInvestment Bank as joint principal advisers for the transaction. DBS has been designated as a joint global coordinator and underwriter, signalling the involvement of both domestic and international financial institutions in structuring and executing the offering.
The planned REIT listing comes amid continued interest in income-yielding real estate platforms across Southeast Asia, particularly those backed by diversified asset classes and established operating histories. IOI Properties proposed vehicle is expected to add to Malaysia's listed REIT market, subject to regulatory approvals and prevailing market conditions closer to the intended listing timeline.
Source - Reuters
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