IOI Properties explores options to monetize $9 billion in assets

In Singapore and Malaysia, IOI Properties, controlled by Malaysian billionaire brothers Lee Yeow Chor and Lee Yeow Seng, is assessing various strategies to monetize its real estate assets, which are valued at nearly $9 billion. Recently, IOI Properties secured full ownership of South Beach, a significant mixed-use property in Singapore, by purchasing a 50.1% stake held by City Developments, which is led by billionaire Kwek Leng Beng. This deal valued South Beach at S$2.75 billion ($2.1 billion), heightening IOI's presence in Singapore's property market. Analyst Tan Kai Shuen from Hong Leong Investment Bank has suggested that this prime asset, along with the recently completed IOI Central Boulevard Towers in Marina Bay, could serve as the foundation for a Singapore Real Estate Investment Trust (REIT) listing by 2027. It is estimated that this REIT could encompass assets worth S$8 billion. Additionally, Tan indicated that IOI Properties might look to launch a Malaysian REIT potentially worth 8 billion ringgit ($2.4 billion) as early as next year. In Malaysia, IOI Properties owns significant assets, including the IOI City commercial complex in Putrajaya, which features the country's largest shopping mall, office towers, and hotels. The group expressed that they would strategically review various monetization possibilities to ensure their continued growth and optimize value for stakeholders across both markets. With a combined net worth of $5.2 billion, the Lee brothers represent some of Malaysia's wealthiest individuals, having inherited a legacy established by their father, Lee Shin Ying, who founded a prosperous palm oil and property enterprise before his passing in 2019. Lee Yeow Chor leads the palm oil operations under the separately listed IOI Corp, while Lee Yeow Seng oversees the real estate arm of the family business.