Malaysia's IOI Properties to buy Singapore’s Shenton House from its billionaire CEO for $1

Malaysia's IOI Properties is set to acquire Singapore's Shenton House from its billionaire CEO for a mere $1, according to a Bursa Malaysia filing. Lee, a major shareholder of IOI Properties and the sole shareholder of Shenton 101, the entity that owns the property, is poised to sell his stake. Shenton House, a 25-story commercial development located in Singapore's central business district, consists of a 20-story office tower and a five-story podium with shops and a car park.

With a gross floor area of approximately 28,356 square meters and a net lettable area of around 20,276 square meters, the property is expected to be redeveloped into a mixed-use project featuring Grade-A offices, a luxury hotel, and retail space. IOI Properties' board initially rejected Lee's proposal to sell Shenton 101 in August 2024 due to substantial capital commitments.

However, IOI Properties now sees this acquisition as an opportunity to expand its presence in Singapore and focus on high-quality, income-generating assets. The group will finance the acquisition using its internal funds, and it does not require shareholder approval. The approval from Bank Negara Malaysia, Shenton 101's lenders, and the Singapore Land Authority is pending.

IOI Properties has also announced that its real estate investment trust, which holds retail, office, and hotel assets, has been approved to be listed on Bursa Malaysia Securities. The acquisition of Shenton House will significantly boost IOI Properties' position in the Singapore real estate market.