IOI Properties’ proposed REIT manager gets SC licence, executes deed

PETALING JAYA (Sept 9): IOI Properties Group Bhd (IOIPG) has moved a step closer to the proposed listing of its RM7.58 billion real estate investment trust (REIT), after its proposed REIT manager obtained a fund-management licence from the Securities Commission Malaysia (SC) and executed the deed with the trustee.

In a Bursa Malaysia filing on Wednesday (Sept 9), IOIPG said the SC, through a letter dated Sept 8, granted IOI REIT Management Sdn Bhd (IRMSB) a Capital Markets Services Licence for fund management in relation to asset management restricted to REITs.

The regulator also granted Capital Markets Services Representative’s Licences to Chong Voon Fooi, Wilfred Wong Vui Hiung and Loo Weng Zian for the same regulated activity.

IRMSB and MTrustee Bhd executed the deed in respect of IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT) on Wednesday, the group said.

The developments follow the SC’s earlier approval for the proposed establishment and Main Market listing of IOIPG REIT, as well as IRMSB’s appointment as its management company, subject to conditions. IOIPG announced the approval on Aug 7.

Nine properties in proposed portfolio

Under the proposal, IOIPG REIT will have an initial fund size of 5.5 billion units and acquire nine properties from the IOIPG group for RM7.578 billion.

The consideration will be satisfied through the issuance of 5.5 billion consideration units at 90 sen each and RM2.653 billion in cash, to be funded through sukuk issuance.

The proposed portfolio comprises IOI City Mall, IOI City Towers, PFCC Towers, Putrajaya Marriott Hotel, Le Méridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur and Courtyard by Marriott Penang.

Knight Frank’s updated valuation, based on a May 31 valuation date, placed the portfolio’s appraised value at RM7.664 billion, RM86 million or 1.1% above the proposed disposal consideration.

The proposals remain conditional on, among other things, Bursa Malaysia Securities Bhd’s approval for the listing, approval from IOIPG shareholders at an extraordinary general meeting and approval from shareholders of the relevant vendors for the proposed disposals.

The CMSL is also subject to conditions, including no adverse findings from the vetting of IRMSB and specified personnel. IRMSB is required to maintain policies to manage conflicts of interest, review its framework and procedures after commencing business, and implement the business plan submitted with its licence application.

..........

EdgeProp monthly brings you data, insights and solutions for an evolving market. Subscribe now for your free copy!