IOI Properties to launch up to RM2.5 bil worth of projects in 2017

PUTRAJAYA (Feb 13): IOI Properties Group Bhd is looking to launch property projects worth an estimated gross development value (GDV) of RM2 billion to RM2.5 billion in 2017, said chief executive officer Lee Yeow Seng.

"We are quite spread out. We have on-going projects in Singapore, Klang Valley, Johor and Xiamen (China)," he told reporters, after the group's extraordinary general meeting (EGM) today.

Yeow Seng said sales contribution are now evenly spread between local and overseas market, which he described as well-diversified and bodes well for the property developer as the local property market slows.

"In the last financial year, China has a higher contribution. But moving forward, probably Singapore will be catching up with [one of] our projects [there], completing next month," he said.

Today, shareholders approved the proposed ratification related to a S$2.57 billion land tender in Singapore and a proposed rights issue of up to 1.11 billion shares, at an issue price of RM1.38 per rights share, on the basis of one rights share for every four existing IOI Properties shares.

IOI Properties executive chairman Tan Sri Lee Shin Cheng said shareholders are supportive of the land deal.

"It's for long-term investment. They are seasoned investors. They congratulate us for successfully bidding for the land. When it comes to property development, it's always the location [that matters]. If you don't buy now, there will not be any [left later]," he said after the EGM.

Last November, IOI Properties announced that its wholly-owned subsidiary, Wealthy Link Pte Ltd, has successfully tendered for a 1.09ha plot in Central Boulevard in the city state for S$2.57 billion (RM7.96 billion) from Singapore's Urban Redevelopment Authority. The bid for the prime tract, located at the Marina Bay area, is reportedly the highest for a government land sale.

IOI Properties said then that this new addition to its landbank is an opportunity for the group to venture into prime office development in Singapore's central business district.

Current property developments in Singapore undertaken by IOI Properties comprise Seascape and Cape Royale at Sentosa Cove, Cityscape at Farrer Park, and The Trilinq at Jalan Lempeng.

At 2.42pm, IOI Properties' shares slid 2 sen or 0.94% to trade at RM2.10, for a market capitalisation of RM9.25 billion. —

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