IOI Properties Proposes To Set Up IOIPG REIT, Inject Assets Worth RM7.58 Bln

KUALA LUMPUR, April 10 (Bernama) -- IOI Properties Group Bhd (IOIPG) has proposed to establish a real estate investment trust (REIT) and inject the group’s retail, hotel and office properties into the REIT for RM7.58 billion.

The property developer said the assets to be disposed of to MTrustee Bhd, the proposed trustee for IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT), include IOI City Mall in Putrajaya; six hotel properties including W Kuala Lumpur, Le Meridien Putrajaya and Putrajaya Marriott Hotel; and office properties in Putrajaya and Puchong.

The disposal consideration will be satisfied via the issuance of 5.5 billion units in IOIPG REIT at an indicative issue price of 90 sen per unit, as well as RM2.65 billion in cash, it said in a filing with Bursa Malaysia today.

In addition, the group has proposed an offering of up to 2.2 billion units in IOIPG REIT, comprising retail and institutional offerings, at a price to be determined later.

The proposals also include the listing of IOIPG REIT on the Main Market of Bursa Malaysia Securities Bhd.

IOIPG said the gross proceeds of RM4.62 billion from the proposed offering (based on 90 sen per offer unit) will be mainly used to repay borrowings (RM3.035 billion) as well as for project development and property investment expenditures (RM1.55 billion).

IOIPG’s wholly owned subsidiary IOIPG REIT Management Sdn Bhd is intended to be the REIT’s management company, while Henry Butcher Malaysia (Mont Kiara) Sdn Bhd is the REIT’s proposed property manager for IOI City Mall and the office properties. 

The group said that subject to all requisite approvals being obtained, the proposals are expected to be completed by the fourth quarter of 2026.

-- BERNAMA