IOI Properties advances Reit listing, backed by US$1.8 billion portfolio

[KUALA LUMPUR] Malaysian developer IOI Properties Group has signed an underwriting agreement with six financial institutions for the proposed listing of IOIPG Malaysia Real Estate Investment Trust (Reit), the initial property portfolio of which is valued at RM7.66 billion (US$1.8 billion).

The deal moves IOIPG Malaysia Reit closer to what is expected to be one of South-east Asia’s major property stock debuts this year.

The diversified Reit expects to launch its prospectus in the fourth quarter of 2026, and then list on Bursa’s Main Market.

Its initial portfolio comprises nine properties, anchored by IOI City Mall, six hotels and two office developments.

Under the agreement, the six financial institutions will underwrite 165 million units comprising the Malaysian public offering and a restricted offering to eligible directors, employees and business associates, subject to clawback and reallocation provisions.

The agreement was signed by IOIPG Reit Management, the Reit’s manager; IOI Properties, its sponsor; and MTrustee, its trustee.

The six underwriters are Maybank Investment Bank, AmInvestment Bank, CIMB Investment Bank, Hong Leong Investment Bank, RHB Investment Bank and UOB Kay Hian Malaysia.

The proposed initial public offering involves up to 2.2 billion units, representing 40 per cent of the Reit’s total issued fund size of 5.5 billion units upon listing.

The value of the initial property portfolio stood at about RM7.66 billion as at May 31, 2026, said the statement.

SEE ALSO

IOI Properties and CapitaLand Investment closer to acquiring One Raffles Place in joint bid

OUE Reit confirms IOI Properties, CapitaLand in talks for One Raffles Place, says no binding deal reached yet

From developer to city shaper: IOI Properties’ vision for Singapore’s downtown

IOI Properties files Reit listing that may raise RM1.98 billion

More

Hotel and office assets

IOI City Mall, described by the manager as Malaysia’s largest retail mall, has more than 2.5 million sq ft of net lettable area.

The six hotels are Putrajaya Marriott Hotel, Le Meridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur and Courtyard by Marriott Penang. 

They have a combined 1,920 guest rooms and operate under Marriott International’s family of brands.

The two office properties, IOI City Towers and PFCC Towers, have a combined net lettable area of about 1.83 million sq ft.

Chris Chong, chief executive of IOIPG Reit Management, said tourism growth and resilient domestic demand would support the portfolio’s hotel and retail assets.

“Signing this underwriting agreement is an important step in bringing IOIPG Reit’s listing to fruition,” he said.

He noted the demand for premium office space outside Kuala Lumpur’s city centre, despite an oversupply in the broader Klang Valley market.

Businesses were seeking offices with better amenities, connectivity and sustainability features, he added. Occupancy rates in the Putrajaya and Puchong corridors have been rising since 2022.

The IPO’s retail tranche comprises about 715.6 million units, or 13 per cent of the total issued fund size; institutional and selected investors will be offered up to 1.48 billion units, or 27 per cent. Final allocations are subject to clawback and reallocation provisions and an over-allotment option.

Maybank Investment Bank and AmInvestment Bank are the IPO’s joint principal advisers, global coordinators, bookrunners and managing underwriters.

Catalysts to IOI Properties

Analysts see the proposed listing as a catalyst for IOI Properties Group to unlock the value of its investment properties and recycle capital.

In a recent report, CGS International said earlier completion of the group’s proposed Reit exercises would accelerate capital recycling and provide a market-based valuation for its investment properties. 

It also highlighted the Malaysian portfolio’s updated independent valuation of RM7.66 billion, up 1.1 per cent from the previous assessment.

BIMB Securities said the Malaysian Reit could provide a clearer pathway for capital recycling and debt reduction. 

However, it cautioned that balance sheet discipline remained important, and that the timing and proceeds of the listing were key factors in the group’s outlook.

IOI Properties also has a sizeable Singapore portfolio, including IOI Central Boulevard Towers, South Beach, and the recently acquired Asia Square Tower 2.

The group has teamed up with CapitaLand Investment on a 50-50 joint bid for One Raffles Place and is conducting exclusive due diligence. OUE Reit confirmed on Oct 8 that negotiations were ongoing and no binding sale agreement had been signed.