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PETALING JAYA (July 24): IOI Properties Group Bhd (IOIPG) has revised its proposed real estate investment trust (REIT) exercise after an updated independent valuation increased the appraised value of the proposed portfolio by RM86 million, or 1.1%, to RM7.664 billion, while the company also enlarged the retail allocation under the proposed unit offering.
In a Bursa Malaysia filing on Thursday, the property developer said the revisions relate to its proposed REIT establishment, asset disposals, offering, listing and lease arrangements announced previously.
Portfolio valuation lifted
Knight Frank, the independent property valuer, completed an updated valuation of the proposed REIT portfolio based on a material valuation date of May 31, 2026, resulting in a revised appraised value of RM7.664 billion, compared with the updated original appraised value of RM7.578 billion based on Oct 31, 2025.
The higher valuation was attributable to increased market values for IOI City Mall, IOI City Towers, PFCC Towers, Putrajaya Marriott Hotel and Moxy Putrajaya, partly offset by lower market values for Courtyard by Marriott Penang and W Kuala Lumpur, according to the filing.
IOIPG said the value of W Kuala Lumpur declined by RM3 million following revisions to the valuation assumptions adopted for the proposed lease arrangement involving an additional 3,649 sq ft improvement area that is currently a void space and does not form part of the hotel's existing strata titles.
Disposal price maintained below valuation
Following the valuation update, the revised disposal consideration for the proposed portfolio is RM7.578 billion, which the filing said represents a RM86 million, or 1.1%, discount to the revised independently appraised value.
The portfolio comprises IOI City Mall, IOI City Towers, PFCC Towers, Putrajaya Marriott Hotel, Le Méridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur and Courtyard by Marriott Penang.
Retail allocation increased
Separately, IOIPG increased the allocation of Pink Form Units under the proposed restricted Pink Form offering to 55 million units, from 23.5 million units, by including eligible business associates of the group who have contributed to its success.
The increase resulted in a corresponding reduction in the allocation for other Malaysian institutional and selected investors, together with foreign institutional and selected investors, to 796.9 million units from 828.4 million units.
The overall proposed offering remains unchanged at 2.2 billion units, representing 40% of the REIT's total units in issue.
Following the revision, the retail tranche will account for 715.6 million units, or 13% of the total units, up from 684.1 million units, or 12.4%, previously. The institutional tranche correspondingly decreases to 1.484 billion units, or 27%, from 1.516 billion units, or 27.6%.
Save for the revisions to the portfolio valuation and offering allocation, IOIPG said all other terms and conditions of the proposed REIT establishment, asset disposals, offering, listing and lease arrangements remain unchanged.
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