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PETALING JAYA: (April 11): IOI Properties Group Bhd (IOI Properties) has formally announced the proposed establishment of IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT), with a total portfolio disposal consideration of approximately RM7.58 billion — one of the largest REIT IPOs in Malaysian history.
The proposals, announced to Bursa Malaysia yesterday (April 10), comprise five components: the establishment of IOIPG REIT, the disposal of retail, hotel and office properties to the REIT's trustee, a public and institutional unit offering, the listing of IOIPG REIT on the Main Market of Bursa Malaysia, and the lease-back of hotel properties to their respective master lessees.
Under the proposed disposals, the subject properties — comprising a retail property, hotel properties and office properties — will be transferred to MTrustee Bhd on behalf of IOIPG REIT for a total consideration of approximately RM7.58 billion.
The consideration will be satisfied via the issuance of 5,500,000,000 units at an indicative issue price of approximately RM0.90 per unit, together with a cash component of approximately RM2.65 billion.
Up to 2,200,000,000 units will be offered to the public and institutional investors under the Proposed Offering, comprising both a retail offering and an institutional offering tranche.
IOIPG REIT Management Sdn Bhd, a wholly-owned subsidiary of IOIPG incorporated in August 2025, will serve as the proposed manager of the REIT.
MTrustee Bhd is the proposed trustee, and Henry Butcher Malaysia (Mont Kiara) Sdn Bhd has been appointed as the proposed property manager for the retail and office properties.
Maybank Investment Bank Bhd and AmInvestment Bank Bhd are the joint principal advisers for the proposals.
The investment policy of IOIPG REIT is to invest in income-producing real estate in Malaysia across retail, commercial, office, industrial and hospitality asset classes, with the objective of providing unitholders with regular and stable cash distributions and long-term growth in net asset value per unit.
The proposals are subject to approval from the Securities Commission Malaysia and IOI Properties’ shareholders, among other regulatory requirements.
IOI Properties’ Malaysian REIT listing has been anticipated since at least June last year, with analysts and media reporting that the portfolio — expected to include IOI City Mall, Malaysian hotels and office assets — could be valued between RM7 billion and RM8 billion.
The group has also been reported to be separately evaluating a Singapore REIT listing on SGX in 2027, covering its Singapore commercial assets including South Beach Tower and IOI Central Boulevard Towers.
IOI Properties’ shares rose 21 sen, or 6.14%, to RM3.63 yesterday (April 10), valuing the group at just under RM20 billion. The counter has rallied 108.9% over the past year.
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