IOI Properties plans Malaysia REIT with assets worth $1.9 billion

IOI Properties Group said on late Friday it plans to list a Malaysian real estate investment trust seeded with retail, office and hotel assets valued at about 7.58 billion ringgit ($1.9 billion), according to a stock exchange filing.

* Reuters ‌first ⁠reported in ⁠November that IOI Properties was exploring REIT listings in Malaysia and Singapore with a combined asset value of up to $8 billion. The Malaysian REIT was then expected to hold domestic assets worth about 7 billion to 8 billion ringgit.

* IOI Properties said in ⁠the filing ‌that the proposed Malaysian REIT will have an initial size of 5.5 billion units, with ⁠IOI offering up to 2.2 billion units. The exercise is targeted for completion in the fourth quarter of 2026.


* At an indicative price of 90 sen a unit, the IPO could raise about 1.97 billion ringgit.

* IOI said gross proceeds from the disposals and offering would ‌total about 4.62 billion ringgit, mainly to repay borrowings and fund project and property investment spending.

* Assets earmarked for ⁠injection include IOI City Mall, IOI City Towers, PFCC Towers, Putrajaya Marriott, Le Meridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur and Courtyard by Marriott Penang.

* Maybank Investment Bank and AmInvestment Bank are joint principal advisers, while DBS is a joint global coordinator and underwriter.

($1 = 3.9600 ringgit)