IOI Properties secures conditional SC approval for proposed RM7.58 billion REIT listing; GuocoLand Malaysia completes privatisation and delists

IOI Properties secures conditional SC approval for proposed RM7.58 billion REIT listing

IOI Properties Group Bhd secured conditional approval from the Securities Commission Malaysia (SC) for the establishment and listing of its proposed real estate investment trust (REIT) on Bursa Malaysia's Main Market, according to a filing dated Aug 7.

The approval, contained in an SC letter dated Aug 6, covers the proposed REIT's establishment and listing, the appointment of its proposed manager and the related Bumiputera equity allocation, subject to the conditions set out by the regulator. It marks a key regulatory milestone for the proposed acquisition of nine retail, office and hotel properties within the IOI Properties group for RM7.578 billion. 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.

The proposed REIT will have an initial fund size of 5.5 billion units, comprising a retail offering of 715.61 million units and up to 1.48 billion units for institutional and selected investors. Among the approval conditions are the proposed manager obtaining a fund management licence restricted to REITs, satisfying operational audit requirements, and allocating units equivalent to 12.5% of the enlarged issued units to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI).

MRCB agrees to conditional RM419 million Cyberjaya land disposal as data-centre-related activity widens

MRCB has agreed to dispose of seven parcels of land in Cyberjaya, Selangor to Digital Cosmos Malaysia Sdn Bhd for RM419.05 million cash under a conditional sale and purchase agreement announced on Aug 7.

The land currently measures about 36.66 acres and is expected to increase to approximately 45.81 acres following a surrender and re-alienation exercise, equivalent to about RM210 per sq ft based on the enlarged land area. MRCB expects the proposed disposal to generate an estimated gain of RM81.4 million. The company said its total investment cost was RM299.7 million and plans to use RM350 million of the proceeds to reduce borrowings, resulting in estimated gross annual interest savings of about RM14.84 million. The proposed disposal remains subject to conditions, including the purchaser securing confirmation of at least 182 megawatts of electricity supply and 9.41 million litres of daily water supply. Completion is targeted for the fourth quarter of 2027, subject to the fulfilment of the stated conditions and approvals.

Separately, NuEnergy Holdings Bhd accepted a RM44.5 million letter of award for mechanical, electrical and plumbing works for a 265kV/11kV consumer landing station building serving a data centre project in Johor Bahru. In Melaka, DPS Resources Bhd's subsidiary Shantawood Sdn Bhd signed a non-binding memorandum of understanding with China's Hangyue Intelligent Electrical Co Ltd to facilitate prospective Chinese-enterprise colocation at a proposed data centre of up to 89MW in Bukit Rambai.

GuocoLand Malaysia completes privatisation and delists from Bursa

GuocoLand (Malaysia) Bhd completed its privatisation on Aug 7, settling cash payments to minority shareholders under its selective capital reduction and repayment exercise before being delisted from Bursa Malaysia.

The exercise, undertaken by controlling shareholder GLL (Malaysia) Pte Ltd under Section 116 of the Companies Act 2016, paid RM269.45 million to minority shareholders at RM1.10 per share for the remaining 34.97% stake they held. GLL (Malaysia), a wholly owned subsidiary of Singapore-listed GuocoLand Ltd, is part of the Hong Leong group controlled by Tan Sri Quek Leng Chan.

The RM1.10 offer represented a premium of about 17.65% over GuocoLand Malaysia's last traded price of 93.5 sen before the privatisation proposal was announced in January, according to published reports.

Also on the radar today

Today's roundup

Capital-markets activity dominated Malaysian property news between Aug 7 and Aug 10. IOI Properties moved a step closer to listing its proposed REIT after securing conditional regulatory approval, while GuocoLand Malaysia completed its privatisation and exited Bursa Malaysia. Data-centre-related activity remained active across multiple states, with MRCB agreeing to a conditional Cyberjaya land disposal, NuEnergy securing a works award in Johor and DPS Resources entering a non-binding collaboration in Melaka. Elsewhere, EcoWorld and Avaland marked construction milestones in Selangor, while Paradigm REIT and Tower REIT reported improved financial performance.