Property

PETALING JAYA, IOI Properties Group Bhd (IOIProp), which announced its fourth-quarter results for the period ended June 30, 2025 (4Q25), is gearing up to launch RM2 billion worth of property projects in Malaysia, with its property investment division expected to remain the main earnings driver. Despite a 14% year-on-year increase in revenue, the developer’s net profit for 4Q25 fell 47%, weighed down by lower fair-value gains from investment properties and higher interest costs. IOIProp also declared an interim dividend of eight sen per share. Analyst opinions remain mixed. Hong Leong Investment Bank Research maintained its “buy” call with an unchanged target price of RM4.05, citing expectations of a stronger earnings recovery than the market anticipates. It also highlighted the group’s planned real estate investment trust (REIT) listing, which should unlock asset value. Meanwhile, MBSB Research maintained a “neutral” stance, citing weak earnings visibility and elevated net gearing of 0.7 times. The research house cut its earnings forecasts for FY26 and FY27 by 38% and 32%, respectively, revising its target price to RM2.09 from RM2.15. TA Research, however, reiterated a “buy” call with a target price of RM2.78, pointing to the group’s FY26 project pipeline, which includes high-rise developments in Bandar Puteri Puchong, 16 Sierra, and IOI Resort City, as well as landed homes in Kulai, Johor, where demand remains resilient. The firm noted that the property investment segment continues to underpin earnings, supported by stable recurring income and a 6% rental reversion across its retail portfolio, which lifted mall valuations. TA Research added that the group’s hospitality and leisure segment stands to benefit from Visit Malaysia 2026, though challenges persist at its recently opened Sheraton Grand Xiamen Jimei in China. To support the planned REIT listing, IOIProp has incorporated a new subsidiary and appointed Maybank Investment Bank Bhd and AmInvestment Bank Bhd as joint principal advisers. The company has guided for the REIT to be listed within 12 to 18 months.

Saudi Arabia’s Alrajhi family is once again seeking a buyer for its Wisma Mont Kiara office building in Kuala Lumpur, with sources indicating that the asking price will be revised from RM150 million to RM130 million to better align with market conditions. Wisma Mont Kiara is located in the affluent Mont’Kiara township and has been on the market since early this year. The 16-storey property, located along Jalan Kiara in the affluent Mont’Kiara township, has a net lettable area of 181,992 sq ft and currently enjoys an occupancy rate of more than 95%. Its tenants include the Malaysian French Chamber of Commerce and Industry, co-working operator Common Ground, and technology firm Concentrix. Rental rates at the building are said to range between RM4.50 and RM5.50 psf. Wisma Mont Kiara forms part of the 1 Mont Kiara integrated development, which also comprises the 30-storey Menara 1 Mont Kiara office suites and the 1 Mont Kiara Mall retail podium. The development was completed in 2010. Rahim & Co International Sdn Bhd has been appointed as the exclusive marketing agent for the transaction. While confirming the appointment, a spokesperson declined to comment further on the family’s divestment plans. At the earlier asking price of RM150 million, the valuation worked out to about RM824 psf — nearly 23% higher than the RM670 psf the family paid when acquiring the building from Singapore-based ARA Asset Management Ltd in 2018 for RM122 million. At the revised price of RM130 million, the valuation comes down to RM714 psf, which a local agent described as “more realistic, given current market conditions and the upgrading required for a 15-year-old building”. The purchase in 2018 was carried out via R J Seven Sdn Bhd, making it the Alrajhi family’s maiden property acquisition in Malaysia. Corporate records show that R J Seven fully owns 1MK Office Sdn Bhd, the holding company of Wisma Mont Kiara, with 11 family members each holding equal stakes of 9.09%. Financial data from CTOS indicates that 1MK Office Sdn Bhd generated RM6.1 million in revenue and RM2.15 million in net profit for the financial year ended Dec 31, 2023. The Alrajhi family is closely linked to Al Rajhi Bank of Saudi Arabia, one of the world’s largest Islamic banks by assets, and its Malaysian subsidiary Al Rajhi Bank Malaysia, which entered the market in 2005 as one of the first Middle Eastern lenders to establish operations here. Strategically located between Kuala Lumpur city centre and Damansara, Wisma Mont Kiara enjoys connectivity via major highways including the Sprint Expressway, NKVE, Penchala Link, Kerinchi Link and Jalan Duta. A mass rapid transit (MRT) station has also been planned adjacent to the site. The Mont’Kiara area continues to attract institutional investors. Just last year, Sunway REIT acquired the seven-storey Sunway 163 Mall (formerly 163 Retail Park), located down the road from Wisma Mont Kiara, for RM215 million from YNH Property Bhd. The mall joins Sunway REIT’s extensive portfolio, which includes Sunway Pyramid Mall, Sunway Resort Hotel, multiple hypermarkets and Sunway Kluang Mall.

KUALA LUMPUR, Singapore-listed developer GuocoLand Ltd is divesting one of its Malaysian hospitality assets as part of its ongoing portfolio rebalancing. The group announced that it is selling the five-star Thistle Johor Bahru hotel together with the land it sits on to YTL Hotels & Properties Sdn Bhd, a wholly-owned subsidiary of YTL Corp Bhd, for RM150 million. In a filing with the Singapore Exchange (SGX), GuocoLand said the transaction is expected to generate a net gain of RM35 million (US$11 million) upon completion. Proceeds from the disposal are likely to strengthen its balance sheet while unlocking value from its hospitality portfolio. The 381-room Thistle Johor Bahru, located in the city centre near the causeway to Singapore, has long been a key landmark property within GuocoLand’s hospitality assets in Malaysia. The hotel is part of the Thistle brand, which has a strong presence in the UK and Malaysia. This sale, however, may not be GuocoLand’s last move in the sector. According to The Edge Malaysia, the developer is also open to selling its other hotel — the 251-room Thistle Port Dickson Resort, located along the coastal town of Port Dickson. Market sources cited by The Edge indicated that the asking price for the property ranges between RM135 million and RM150 million. The Johor Bahru disposal had been anticipated since mid-August, after The Edge Malaysia reported that GuocoLand was in advanced discussions with YTL Hotels for the asset. The deal is now confirmed, adding another prime hospitality property to YTL’s growing portfolio under its hotels and resorts division. YTL Hotels, which owns and manages luxury properties worldwide, including the Ritz-Carlton in Kuala Lumpur and the JW Marriott in Singapore, is expected to integrate the Johor Bahru hotel into its expanding hospitality business. Meanwhile, GuocoLand continues to focus on its core property development and investment businesses across Singapore, China, and Malaysia, while selectively divesting non-core assets. On the Singapore Exchange, GuocoLand’s shares closed at $1.86 on Aug 29, down 1.06% from the previous day.

KUALA LUMPUR, KSK Group’s flagship 8 Conlay project — its first foray into property development after pivoting from insurance — has been officially put up for sale following years of financial troubles and legal battles. Receivers and managers Adam Primus & Co listed the stalled RM5.4 billion mixed-use project in central Kuala Lumpur for sale over the weekend. Interested buyers have until Nov 15 to submit their bids. The move marks the end of a two-year impasse between project owner KSK Land Sdn Bhd and its former main contractor, GDB Holdings Bhd (KL:GDB), which had brought construction to a halt and pushed the venture into receivership. Once marketed as an iconic development featuring the world’s tallest twisted twin towers, 8 Conlay was launched in 2015 on a 3.65-acre site along Jalan Conlay. Plans included three luxury residential towers branded under YOO8, a Kempinski Hotel, retail podium, and other facilities. Work initially progressed, with Tower A reaching structural completion in 2021. But by 2022, disputes over payments triggered lawsuits, suspensions, and ultimately termination of GDB’s RM1.25 billion contract. Attempts to revive the project with a new contractor in 2023 also stalled amid fresh legal claims. GDB later secured multiple court rulings against KSK Land, including orders for unpaid sums exceeding RM140 million. These financial and legal setbacks created a deadlock that culminated in the decision to sell the entire project. KSK Land managing director Joanne Kua. KSK Group, formerly Kurnia Asia Bhd, sold its insurance business in 2012 and shifted into property through KSK Land. The 8 Conlay venture was intended as its bold debut, led by executive chairman Tan Sri Kua Sian Kooi and his daughter, Joanne Kua. Despite the setbacks, market observers note that a sale could pave the way for new ownership to revive the project, offering a potential lifeline after years of delays.

KUALA LUMPUR, Eastern & Oriental Bhd (E&O) said its indirect wholly-owned unit, Hammersmith Properties Ltd, has proposed to sell two freehold land parcels in Hammersmith, London, to Varsity Capital 1 Propco Ltd for at least £75 million (RM427.8 million). In a filing with Bursa Malaysia, E&O said the proceeds will be used for new property development and investment opportunities, or alternatively to pare down existing borrowings. From the sale, about RM221.8 million (net of estimated expenses) has been earmarked for expanding its property business, including potential land acquisitions, joint ventures, or development rights. The sale and purchase agreement is expected to be completed within three years, with the proceeds fully utilised in that timeframe. E&O added that the disposal is expected to generate a net gain of about RM239.3 million, after factoring in the reversal of impairment losses worth RM248.3 million and disposal expenses of RM6 million.

ORLANDO, The Marriott Vacation Clubs part of Marriott Vacations Worldwide, is strengthening its presence in Asia Pacific with several major developments. These include the opening of Marriott Vacation Club, Khao Lak Beach Resort in Thailand this August, new vacation ownership options in Bali, and an expanded marketing call center in Shanghai. John Geller, president and CEO of Marriott Vacations Worldwide. “Asia Pacific continues to be a key growth region for us,” said John Geller, president and CEO of Marriott Vacations Worldwide. “The rising interest in vacation ownership among both local and international travelers makes this the right time to expand.” New Resort in Khao Lak Debuting on August 28, 2025, Marriott Vacation Club, Khao Lak Beach Resort will feature 52 two-bedroom apartments within JW Marriott Khao Lak Resort & Spa. Blending Southern Thai-inspired design with modern comforts, the apartments are ideal for families and extended stays. Guests will also enjoy access to JW Marriott Khao Lak’s extensive facilities, including Southeast Asia’s largest lagoon pool, multiple dining outlets, and sustainable initiatives such as the JW Garden and eco-friendly amenities. Future plans include new recreation facilities by 2026 and a sales gallery that will showcase Marriott Vacation Clubs’ portfolio and Thai-inspired design. Reservations are now open, with Owners and Members able to book stays using Club Points. Expansion in Bali In early 2026, Marriott Vacation Clubs will add 32 new apartments at Marriott’s Bali Nusa Dua Terrace, each with private plunge pools, kitchens, and access to new poolside facilities. In addition, the brand will launch Marriott’s Enclave at Bali Nusa Dua Terrace, featuring 26 spacious apartments (two- and three-bedroom units), each with private pools and dedicated amenities such as a kids’ club, fitness studio, and Owners lounge. Guests at both properties will also enjoy full access to the Renaissance Bali Nusa Dua Resort next door, with its spa, fitness center, and dining options. Strengthening in Shanghai The group is also growing its Shanghai marketing call center, expanding its team from 80 to 125 associates. The larger office will better support Marriott Vacation Clubs’ Owners, Members, and new vacationers across China, ensuring stronger engagement and service.

KUALA LUMPUR, IOI Properties Group Bhd posted a net profit of RM1.06 billion for the financial year ended June 30, 2025 (FY25), a decline from RM2.06 billion in FY2024. Revenue grew marginally to RM3.06 billion from RM2.94 billion a year earlier, supported by strong performances in the property investment and hospitality & leisure divisions, which recorded growth of 46% and 70% respectively. These gains helped offset weaker results from the property development segment. Pre-tax profit fell 37% to RM1.45 billion, compared with RM2.30 billion previously, mainly due to lower fair value gains from investment properties and higher interest costs following the start of operations at IOI Central Boulevard Towers. Group CEO Lee Yeow Seng said the results reflected the group’s resilience despite market challenges.“Looking ahead, our diversified presence across three countries, solid recurring income from property investments, and the positive outlook for hospitality and leisure provide us with a strong foundation for sustainable earnings,” he said in a statement. The board declared a dividend of 8.0 sen for FY25. The property development segment recorded sales of RM1.81 billion, with RM1.62 billion (89%) contributed by Malaysian projects and RM187.6 million (11%) from China and Singapore. In Malaysia, sales were led by the Klang Valley at RM946.8 million, driven by established developments such as IOI Resort City, Putrajaya and 16 Sierra, Selangor. The Johor region contributed RM663.8 million, supported by townships Bandar Putra Kulai and Taman Kempas Utama. Completed inventories declined from RM1.92 billion to RM1.27 billion over the past year, thanks to targeted marketing and strategic positioning. Meanwhile, the property investment segment continued to deliver stable recurring income, supported by IOI City Mall and IOI Mall Puchong, which recorded fair value gains of RM651.4 million and RM61.1 million respectively.

JAKARTA, Indonesia has extended its full value-added tax (VAT) exemption on residential property purchases until the end of 2025 to help sustain household demand and support broader economic growth. The incentive, known as government-borne VAT (PPN DTP), was initially slated to be reduced to 50 percent in the second half of 2025. However, under Finance Ministry Regulation (PMK) No. 60/2025, enacted on Aug. 25, the government opted to maintain the 100 percent waiver for transactions made between July and December 2025. XYZ Livin Lippo Cikarang. Indonesia extended its full value-added tax (VAT) incentive on residential property purchases until the end of 2025, on Monday, Aug. 25, 2025. “To safeguard the momentum of Indonesia’s economic growth by stimulating household purchasing power in the housing sector, the VAT incentive for landed houses and apartment units will continue throughout 2025,” the regulation stated. The scheme grants a full VAT exemption on the portion of a property’s selling price up to Rp 2 billion ($122,000). Eligible purchases include landed houses or apartments priced at up to Rp 5 billion, but only one unit per individual buyer is allowed. Indonesian citizens must register with a tax ID (NPWP) or national identity number (NIK), while foreigners may also qualify if they hold a tax ID and meet property ownership requirements. Only new, unsold, and ready-to-occupy units are eligible, provided they are registered with the Public Works and Housing Ministry or the Housing Savings Management Agency (BP Tapera). The incentive does not apply if down payments were made before July 1, 2025, or if the property is handed over outside the July–December window. Buyers also risk losing eligibility if they purchase multiple units, resell within a year, or if developers fail to issue proper tax invoices and required reports. This regulation replaces PMK No. 13/2025, which had applied the full VAT exemption from January to June. The government has consistently used VAT relief for housing as a stimulus tool, citing the sector’s strong multiplier effects on construction, manufacturing, and household consumption.

PETALING JAYA, Thomson Medical Group (TMG) has officially launched Johor Bay, an RM18 billion gross development value (GDV) project that is poised to become a transformative landmark within the Johor-Singapore Special Economic Zone (JS-SEZ). Spanning 26 acres of freehold land, the integrated master plan will be spearheaded by the upcoming Thomson Hospital Iskandariah, which will serve as the development’s healthcare nucleus. The hospital will be complemented by specialist medical suites, aged care and assisted living facilities, ensuring a comprehensive healthcare ecosystem that caters to the region’s growing cross-border demand. Beyond healthcare, Johor Bay will feature luxury residences, a five-star hotel, commercial zones, and lifestyle precincts, positioning the project as a world-class urban destination. Market observers have already likened the development to becoming the “Marina Bay of Johor,” reflecting its ambition to redefine the region’s skyline and investment landscape. Strategically located just 1.2 km from the upcoming Bukit Chagar rapid transit system (RTS) station, Johor Bay is designed as a holistic ecosystem that integrates healthcare, urban living, and long-term investment opportunities — making it a key anchor in the JS-SEZ blueprint. The project’s first phase, with a value of RM3.1 billion, will include the flagship hospital and a 47-storey luxury residential tower offering 180 exclusive units. This phase alone is expected to generate more than 1,200 new jobs, contributing meaningfully towards the JS-SEZ’s wider objective of creating 20,000 skilled jobs within five years. TMG executive vice-chairman Kiat Lim said the timing was ideal for the launch. “The time is right — economic tailwinds, infrastructure momentum, and demographic shifts are converging. Johor Bay will not only reshape the skyline but also play a defining role in the long-term growth of the JS-SEZ.”

KUALA LUMPUR, Haily Group Bhd, through its wholly-owned subsidiary Haily Construction Sdn Bhd, has bagged a RM50.08 million subcontract from Mandy Corp Sdn Bhd, a subsidiary of Gadang Holdings Bhd, for the development of a new residential project in Gelang Patah, Johor. In its statement, Haily said the contract involves the construction and completion of Laman Citra Phase 3, which will feature 91 units of double-storey terrace houses, another 45 units of double-storey terrace houses, as well as a Tenaga Nasional Bhd (TNB) substation. The scope of works under the agreement includes main building and external works, in addition to mechanical and electrical services required to complete the project. The development is scheduled to be completed within 20 months. This latest contract win further strengthens Haily’s order book, pushing its total secured contract value for 2025 to RM68.11 million. The company also highlighted that its portfolio now encompasses 25 active projects across various segments, with a combined contract value of approximately RM1.05 billion. According to Haily, the new project not only enhances its presence in Johor’s growing property market but also reinforces its role as a reliable construction partner for established developers. The group believes the steady stream of project wins will continue to support its growth trajectory and contribute positively to earnings visibility in the coming years.