IOI Properties to take full ownership of Singapore’s South Beach development in RM2.75b deal with CDL

• The group's wholly owned IOI Consolidated (Singapore) Pte Ltd has inked a conditional share sale agreement with Ascent View Holdings Pte Ltd to acquire the stake in Scottsdale Properties Pte Ltd, the holding company of South Beach Consortium Pte Ltd, which owns the development.

KUALA LUMPUR (June 4): IOI Properties Group Bhd (KL:IOIPG) is acquiring the remaining 50.1% stake in Singapore’s South Beach development (pictured) from City Developments Ltd (CDL) for RM2.75 billion (S$834.22 million), giving the Malaysian developer full ownership of the high-profile mixed-use asset.

The group's wholly owned IOI Consolidated (Singapore) Pte Ltd has inked a conditional share sale agreement with Ascent View Holdings Pte Ltd to acquire the stake in Scottsdale Properties Pte Ltd, the holding company of South Beach Consortium Pte Ltd, which owns the development.

IOI Properties currently owns 49.9% of Scottsdale. On completion of the acquisition, it will fully own the South Beach integrated development, which comprises South Beach Tower, South Beach Avenue, and the JW Marriott Hotel Singapore South Beach.

“The acquisition of the 100% equity stake in this landmark development marks a significant strategic expansion for IOI Properties in Singapore,” said IOI Properties group chief executive Lee Yeow Seng in a joint statement with CDL.

“It elevates the group’s profile as one of the major landlords of premium office space and a prominent player in the hospitality industry within the republic,” Lee said.

The deal is based on an agreed property value of S$2.75 billion (about RM9.05 billion), representing a 3% premium over an independent valuation of S$2.67 billion as of December 2024. After accounting for Scottsdale’s liabilities of S$1.16 billion, the estimated purchase price for the 50.1% stake is about S$834.22 million.

The acquisition will be funded through a combination of internal funds and bank borrowings. IOI Properties, in which the Employees Provident Fund owns an 8.33% stake, said it has already paid a deposit of S$13.75 million (RM45.68 million).

“The proposed acquisition is anticipated to provide the group with an additional stable and sustainable income stream, in alignment with the group’s corporate objectives," IOI Properties said.

And despite ongoing macroeconomic uncertainties, IOI Properties said it remains open to exploring future investment opportunities in stable and mature markets, in line with its goal to deliver sustainable income and long-term value for stakeholders.

To CDL, the deal, one of its largest divestments, is part of the group's strategy to unlock value and recycle capital to reduce gearing and redeploy funds into new opportunities.

“As this property reaches maturity, we have fulfilled our promise. This strategic divestment enables CDL to realise exceptional value, while entrusting ownership to a partner that knows South Beach well,” said CDL executive chairman Kwek Leng Beng.

As of March 31, 2025, South Beach’s commercial components achieved a committed occupancy rate of 92.4% for office space and 92.5% for retail. The leasehold site has about 81 years remaining on its 99-year tenure.

IOI Properties shares closed unchanged at RM1.90 on Wednesday, valuing the group at RM10.41 billion. The counter had earlier been suspended since 10.30am to make way for the announcement.

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