Malaysian billionaire's IOI Properties eyes Singapore private fund launch, early 2027 SGX secondary listing

Malaysian billionaire Lee Yeow Seng's IOI Properties is planning to launch a private real estate fund in Singapore early next year, with a proposed listing on the Singapore Exchange. IOI Properties CEO Lee mentioned this during the launch of the group's Malaysia real estate investment trust (REIT) prospectus. The company has already discussed the listing with the Singapore Exchange, and the process could be completed quickly due to the fulfillment of many compliance requirements already met through its primary listing on Bursa Malaysia.

The private real estate fund, backed by S$6 billion (US$4.69 billion) in assets, includes the South Beach complex and the IOI Central Boulevard Towers office building in Singapore. IOI Properties aims to deliver a yield of at least 3.5% on the fund, which is comparable to the market rate for prime Grade-A office space in the city-state.

The moves are part of IOI Properties' strategy to reduce its net debt from 85% of equity at the end of June to 30-50% over the next three to five years. Over the past year, the group has acquired significant assets in Singapore, including the South Beach complex, Asia Square Tower 2, Shenton House, and One Raffles Place office complex.

With nearly S$12 billion in prime Singapore office space, IOI Properties is now one of the city-state's largest commercial landlords. The Malaysian billionaire and his brother are among the wealthiest Malaysians, with a net worth of US$8.5 billion in April 2023. IOI Properties is part of a larger business empire controlled by the brothers, which also has interests in palm oil.