IOI Properties Group Bhd has announced plans to establish and list a real estate investment trust (REIT) comprising a portfolio of retail, office and hotel assets with a total value of RM7.58 billion.
In a filing with Bursa Malaysia, the group said it intends to inject several Malaysian properties — including IOI City Mall and IOI City Park — into the proposed trust, to be known as IOIPG Malaysia REIT (IOIPG REIT). The REIT is expected to be listed on the Main Market of Bursa Malaysia with an initial fund size of 5.5 billion units.
The move follows earlier reports in June 2025 that IOI Properties was exploring a REIT listing as part of efforts to manage debt arising from past acquisitions. In August last year, the group had also set up IOIPG REIT Management Sdn Bhd to act as the REIT manager.
IOI Properties said the proposed listing is targeted for completion by the fourth quarter of 2026, subject to approvals from the Securities Commission Malaysia, Bursa Malaysia, the Ministry of Investment, Trade and Industry (Miti), and shareholders.
The REIT will be established under a trust deed lodged with the Securities Commission and will focus on income-generating assets across retail, commercial, office and hospitality segments, in line with REIT guidelines.
Under the proposed structure, the asset injection will be satisfied through the issuance of 5.5 billion units at an indicative price of 90 sen per unit, along with a cash component of RM2.65 billion. The cash portion will be funded through borrowings raised at the REIT level via a medium-term note programme.
Following the injection, IOI Properties plans to offer up to 2.2 billion units, or 40% of the REIT, to investors through a combination of retail and institutional placements. Based on the indicative pricing, the exercise could raise approximately RM2 billion, while the REIT will also assume RM2.65 billion in debt as part of the transaction structure.
The retail offering will include allocations for existing shareholders, employees and the public, including a Bumiputera portion. Meanwhile, the institutional tranche will be offered to selected investors, including Bumiputera investors approved by Miti. Final pricing will be determined closer to listing via a bookbuilding process, with the retail price set at the lower end of the institutional price range.
Several hotel assets within the portfolio are expected to be leased back to IOI Properties-related companies under long-term arrangements upon completion of the exercise.
Proceeds raised are expected to be channelled to IOI Properties and will primarily be used to repay borrowings, fund ongoing development and investment activities, as well as cover transaction-related expenses.
Maybank Investment Bank Bhd and AmInvestment Bank Bhd have been appointed as joint principal advisers, global coordinators, bookrunners, managing underwriters and underwriters for the exercise. DBS Bank Ltd is also acting as joint global coordinator and bookrunner, while Knight Frank has been appointed as the independent property valuer.
The REIT manager, IOIPG REIT Management, has an issued share capital of RM1 million. Its board includes IOI Properties group CEO Datuk Lee Yeow Seng and Datuk Ong Eng Bin. MTrustee Bhd has been proposed as trustee, with Rockwills International Bhd as its ultimate holding company, while Henry Butcher Malaysia (Mont Kiara) Sdn Bhd is expected to serve as property manager for the retail and office assets.
Financially, IOI Properties reported a strong performance for the second quarter ended Dec 31, 2025, with net profit rising significantly to RM708.84 million from RM94.78 million a year earlier. Revenue also increased to RM1.04 billion from RM729 million.
On the market front, IOI Properties shares rose 21 sen, or 6.14%, to close at RM3.63 on Friday, giving the group a market capitalisation of nearly RM20 billion. Over the past year, the stock has gained 108.9%.
