IOI Properties gets SC nod for RM7.58b REIT listing - The Edge Malaysia
IOI Properties gets SC nod for RM7.58b REIT listing The Edge Malaysia
Source: The Edge Malaysia · August 8, 2026 at 5:42 AM · AI-assisted report
BURSA MALAYSIA, 8 AUGUST 2026 —
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IOI Properties Group Bhd has secured approval from the Securities Commission Malaysia (SC) to establish and list its real estate investment trust (REIT), which will comprise RM7.58 billion worth of the property developer's retail, office, and hotel assets. The proposed IOIPG Malaysia REIT is set to debut with an initial fund size of 5.5 billion units and will be listed on the Main Market of Bursa Malaysia. This development marks a significant milestone for IOI Properties, as it seeks to unlock the value of its assets and provide investors with a new investment opportunity.
Market Impact
The REIT will acquire nine properties from IOI Properties subsidiaries, including the IOI City Mall, which is valued at RM5.1 billion and accounts for approximately two-thirds of the portfolio acquisition value. Other assets include the IOI City Towers and PFCC Towers, as well as six hotels - Putrajaya Marriott Hotel, Le' Meridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur, and Courtyard by Marriott Penang. The acquisition of these properties will be satisfied through the issuance of 5.5 billion units at 90 sen each, alongside RM2.65 billion in cash to be funded through sukuk issuance.
The proposed offering will comprise a retail portion, which will include 715.61 million units offered to the public, as well as an institutional offering of up to 1.48 billion units. Eligible shareholders of IOI Properties will be entitled to one REIT unit for every ten IOI Properties shares held on an entitlement date to be announced later. A total of 550.61 million units will be offered through a restricted offer for sale to existing IOI Properties shareholders, while 55 million units will be allocated to eligible persons, and 110 million units will be made available to the Malaysian public.
The institutional offering will comprise up to 1.48 billion units, including 687.5 million units for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), with up to 796.89 million units allocated to other Malaysian and foreign institutional and selected investors. The SC's approval is subject to several conditions, including the allocation of units equivalent to 12.5% of the REIT's enlarged issued units to Bumiputera investors approved by Miti. IOI REIT Management Sdn Bhd, which will manage the REIT, is also required to obtain the SC's approval for a fund management licence restricted to REITs and submit an operational audit report within six months after the listing.
The listing of the IOIPG Malaysia REIT is expected to have a significant impact on the Malaysian property market, as it will provide investors with a new opportunity to invest in a diversified portfolio of high-quality assets. The REIT's focus on retail, office, and hotel assets is also expected to provide a stable source of income for investors, given the strong demand for these types of properties in Malaysia. Details not yet available on the expected dividend yield of the REIT, but it is likely to be competitive with other REITs listed on Bursa Malaysia.
The SC's approval of the IOIPG Malaysia REIT listing is a positive development for the Malaysian capital market, as it demonstrates the regulator's commitment to supporting the growth of the REIT sector. The listing is also expected to attract new investors to the market, including foreign investors who are looking to invest in Malaysian real estate. According to the SC, the REIT sector has grown significantly in recent years, with the total market capitalization of REITs listed on Bursa Malaysia increasing to over RM50 billion.
Stakeholders have welcomed the SC's approval of the IOIPG Malaysia REIT listing, citing the potential benefits for investors and the Malaysian economy. However, no specific quotes are available from stakeholders at this time. The listing of the IOIPG Malaysia REIT is subject to several conditions, and investors will be closely watching the development of this story in the coming weeks and months. As the REIT prepares for its listing, investors will be looking for more information on the REIT's strategy, management team, and financial performance.
In conclusion, the SC's approval of the IOIPG Malaysia REIT listing marks a significant milestone for IOI Properties and the Malaysian REIT sector. The listing is expected to provide investors with a new opportunity to invest in a diversified portfolio of high-quality assets, and to support the growth of the Malaysian economy. As the REIT prepares for its listing, investors will be closely watching the development of this story, and looking for more information on the REIT's strategy, management team, and financial performance. With a total asset value of RM7.58 billion, the IOIPG Malaysia REIT is set to be one of the largest REITs listed on Bursa Malaysia, and its listing is expected to have a significant impact on the Malaysian property market.
Related: IOI Properties Group Bhd · Securities Commission Malaysia · Bursa Malaysia