Among other positive attributes, the acquisition gives IOI Properties full control, which makes it easier to optimise operations, unlock synergies and accelerate monetisation strategies.
South Beach and IOI Central Boulevard Towers are expected to be the anchor assets for the Singapore REIT listing, with a combined asset value of between $7 billion and $8 billion. Assuming IOI Properties retains 60% control, Tan says this exercise should unlock cash proceeds of $2.8 billion to $3.2 billion.
IOI Properties Group’s Singapore REIT, likely to consist of South Beach and IOI Central Boulevard Towers, is targeted for launch in 2027, says Hong Leong Investment Bank’s Tan Kai Sheun.
According to Tan, who based his report on a meeting with IOI Properties’ group CEO Lee Yeow Seng, his acquisition of City Developments’ (CDL) stake in South Beach came about a month earlier when CDL expressed its intention to sell, and IOI Properties, as the joint-venture partner, had first dibs. Tan says: “The opportunity to secure an en-bloc acquisition of high-quality commercial assets in Singapore is exceptionally rare, making this a highly strategic move.”
