KUALA LUMPUR (Oct 12): IOI Properties Group Bhd (KL:IOIPG) is eyeing a 50% stake in One Raffles Place, an integrated commercial development in Singapore’s central business district.
In a filing with Bursa Malaysia, the group said it had jointly submitted an expression of interest with an investment entity managed by CapitaLand Investment Ltd to acquire a 100% interest in One Raffles Place on a 50:50 basis.
News of IOI Properties’ and CapitaLand Investment’s interest in One Raffles Place emerged as early as August this year. At the time, the property was reported to be valued at S$2.4 billion (RM7.65 billion).
IOI Properties said the parties were conducting due diligence and holding exclusive discussions with the vendors to agree on mutually acceptable terms.
OUE REIT, backed by Indonesia’s Riady family, which controls the Lippo Group, owns an 81.54% stake in the property through a subsidiary, while United Overseas Bank holds the remaining 18.46% and occupies part of the complex.
The parties are working towards finalising the definitive agreements and related transaction documents, subject to the satisfactory completion of due diligence during the exclusivity period.
The property comprises two office towers and a retail podium. Tower 1 is a 62-storey office building with rooftop retail, completed in 1986, while Tower 2 is a 38-storey office building with ancillary retail and a basement level, completed in 2012. The development also includes a five-storey retail podium with a basement level.
IOI Properties said it would update shareholders and make further announcements to Bursa Malaysia as material developments arise, including the signing of definitive agreements.
Separately, IOI Properties is planning a RM7.58 billion listing of IOIPG Malaysia Real Estate Investment Trust on the Main Market by year-end. On Monday, it signed an underwriting agreement with six financial institutions.
The group’s shares closed four sen, or 1.19%, lower at RM3.31 apiece, valuing the group at RM18.23 billion. The stock has risen by more than 56% over the past year.