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PETALING JAYA (Aug 7): IOI Properties Group Bhd (KL:IOIPG) has secured conditional approval from the Securities Commission Malaysia (SC) for the establishment and listing of its proposed real estate investment trust (REIT), marking a key regulatory milestone for the REIT's proposed acquisition of nine properties for RM7.578 billion.
In a Bursa Malaysia filing on Friday (Aug 7), IOI Properties said the SC, through a letter dated Aug 6 that was received on Aug 7, approved the establishment and listing of IOIPG REIT on Bursa Malaysia's Main Market under Section 214(1) of the Capital Markets and Services Act 2007.
The regulator also approved the appointment of IOIPG REIT Management Sdn Bhd as the proposed REIT manager under Section 289(2) of the Act, as well as the application under the Bumiputera equity requirement for public listed companies in relation to the proposed REIT establishment and listing.
Regulatory approvals
The approvals are subject to terms and conditions, including the proposed REIT manager obtaining SC approval to be licensed for fund management in relation to asset management, restricted to REITs, and submitting an operational audit report on the REIT's operations within six months after listing.
The SC also requires IOIPG REIT to allocate units equivalent to 12.5% of its enlarged number of issued units to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI), and to make available at least 50% of the units offered to Malaysian public investors via balloting to Bumiputera public investors.
Nine-property portfolio
Under the proposal, IOIPG REIT is proposed to have an initial fund size of 5.5 billion units and acquire nine retail, office and hotel properties from companies within the IOI Properties group for a total purchase consideration of RM7.578 billion.
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.
Offering structure
The proposed offering, subject to clawback and reallocation provisions, comprises 715.61 million units for retail investors and up to 1.48 billion units for institutional and selected investors.
The retail offering includes a restricted offer for sale of 550.61 million units to entitled IOIPG shareholders on the basis of one unit for every 10 IOIPG shares held on a date to be announced by IOIPG. The restricted offer is non-renounceable and non-tradeable.
A further 55 million units will be allocated to eligible persons, while 110 million units will be offered to the Malaysian public, of which 55 million units are reserved for Bumiputera public investors via balloting.
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