Malaysian billionaire Lee brothers’ IOI Properties wins approval for $1.85B REIT listing
IOI Properties, controlled by the billionaire Lee brothers, has secured regulatory approval in Malaysia to establish and list a real estate investment trust backed by RM7.58 billion (US$1.85 billion) in assets.
Malaysian billionaire brothers Lee Yeow Chor and Lee Yeow Seng saw their IOI Properties venture receive regulatory approval for a $1.85 billion Real Estate Investment Trust (REIT) listing. The trust, IOIPG Malaysia Real Estate Investment Trust, will start trading on Bursa Malaysia's Main Market, backed by an initial fund size of 5.5 billion units.
The acquisition includes nine properties from IOI Properties subsidiaries, valued at RM7.58 billion, comprising the high-profile IOI City Mall and a portfolio of premium hotels and other assets.
The listing is contingent on meeting conditions set by the Securities Commission Malaysia, such as maintaining a 12.5% Bumiputera equity stake and conducting operational audits post-listing. IOI REIT Management, responsible for overseeing the trust, must also secure permission for a specialized fund management license, limiting their activities to REITs.
They are required to submit an operational audit report within six months of the listing. Currently, IOI Properties holds a market value of RM21.9 billion, placing its shares at RM3.98 each, according to The Edge Malaysia.
With a combined net worth of $8.5 billion in April, the Lee brothers ranked third among Malaysia's wealthiest individuals, surpassed only by the Koon brothers of Press Metal and tycoon Robert Kuok, as reported by Forbes.
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