Daily Digest · Friday, 25 September 2026· Updated: 3 days ago
IOIPG sets out RM7.66b REIT plan; fresh proposal to revive PacifiCity
IOI Properties Group Bhd exposed a draft prospectus for a nine-property REIT, while Sabah Development Bank Bhd disclosed a new proposal for the stalled PacifiCity development. Other property news covers older commercial assets, development approvals and residents affected by a landslide.
Quick takes
- ECRL extension remains a proposal: Malaysia and China have agreed on a proposed extension from Kota Bharu to Rantau Panjang. Stakeholder discussions and Cabinet consideration are still ahead. The final alignment, cost and delivery timetable have not been announced, and no cross-border rail arrangement was set out.
- Maybulk’s Klang property: A supplementary Bursa filing said the RM35.5 million Bandar Bukit Raja property that Maybulk Bhd proposes to buy is fully occupied. A fresh tenancy with Goteam Sdn Bhd would yield RM155,000 a month, or RM1.86 million a year, once the purchase is completed.
- EcoFirst’s Penang purchases: Vendors have extended the completion deadline for EcoFirst Consolidated Bhd’s proposed RM45 million acquisition of two freehold parcels to Nov 30. The extension does not mean the purchases have completed.
- Short-term accommodation: The Malaysian Association of Hotels wants tighter regulation and booking-platform checks on whether listed premises meet applicable requirements. These are proposals for Budget 2027, not announced changes to the rules.
Draft prospectus sets out RM7.66b portfolio led by IOI City Mall
A draft prospectus exposed for public comment on Thursday sets out IOI Properties Group’s proposed listing of IOIPG Malaysia REIT. Its nine-property portfolio has an aggregate appraised value of about RM7.66 billion. The REIT would acquire the assets from group subsidiaries for RM7.58 billion, comprising approximately RM4.92 billion in REIT units and RM2.65 billion in cash to be funded through sukuk.
IOI City Mall carries a purchase consideration of RM5.1 billion. Its appraised value of RM5.15 billion as at May 31 accounts for about 67% of the portfolio valuation. The remaining properties are six hotels — Putrajaya Marriott Hotel, Le Méridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur and Courtyard by Marriott Penang — and two office assets, IOI City Towers and PFCC Towers.
The hotels would be leased to IOI Properties Group subsidiaries under master leases. The proposed offering comprises up to 2.2 billion existing REIT units, so proceeds from that offering would accrue to IOI Properties Group rather than the REIT. On a pro forma basis, the REIT expects indebtedness of about RM2.65 billion on listing, equivalent to roughly 34% of its estimated RM7.79 billion total asset value.
Why it matters
The proposal would place a substantial retail, hotel and office portfolio in a listed vehicle. The offer price, application dates and listing date remain open. The draft prospectus has not been registered with the Securities Commission Malaysia, so units cannot yet be offered or applications accepted.
SDB reviews new approach for Kota Kinabalu waterfront project
Sabah Development Bank Bhd (SDB) said on Thursday that it and the private liquidator overseeing PacifiCity were reviewing a proposal received on Sept 14. The approach is preliminary; it is not an agreed rescue, takeover or commitment to resume construction.
The RM2 billion integrated waterfront project occupies about 18.5 acres at Likas Bay, Kota Kinabalu. Development stalled in 2023 after developer Pacific Sanctuary Holdings Sdn Bhd encountered financial difficulties. The project is now administered by court-appointed private liquidators.
SDB said two earlier preliminary proposals did not proceed after the interested parties assessed the capital required to complete the project. The bank also disputed allegations by people claiming to represent purchasers that it had obstructed revival efforts.
Why it matters
The new proposal offers a possible route forward for purchasers, but the interested party has yet to establish a funded completion plan acceptable to the relevant stakeholders.
Also on the radar today
UDA eyes revival of older assets
UDA Holdings Bhd has identified four to five older properties for possible revival, minister Steven Sim Chee Keong said. He cited Jalan Petaling’s Chinatown 1974, a former UDA building vacant for about five years and now housing eight businesses. UDA has not named the other assets or disclosed plans, costs or timetables.
MyBIM cuts submission processing time
The Works Ministry says MyBIM has cut processing time for planning submissions from 14 days to about 48 hours. It plans to add artificial intelligence to future reviews. The ministry received RM83.3 million to establish 16 BIM Labs by December. The reported turnaround is not a guarantee of final approval.
JKG Land’s 2Q profit falls 98%
JKG Land’s second-quarter net profit fell 98% to RM231,000 as revenue dropped 76.4% to RM18.05 million. The developer cited lower contributions from an ongoing project and 31% take-up for an unnamed northern Phase 7 launch. Sales of completed properties provided some support. No interim dividend was proposed.
BEDI’s Kota Kinabalu disposal
BEDI Bhd said the RM14.3 million sale of its Mile 5, Tuaran Road commercial property was deemed completed on Sept 22 after its subsidiary received the balance consideration. The 1.15-acre leasehold site, held under title CL015379487, includes two warehouses and an office/showroom block. The completion filing did not disclose a realised gain.
Today's roundup
IOI Properties Group’s draft prospectus set out the scale and structure of its proposed REIT, while a new proposal offered a possible path to revive PacifiCity. Elsewhere, the news ranged from UDA’s plans for older properties and faster MyBIM processing to a completed disposal and residents awaiting the findings of a Cheras slope safety assessment.
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