IOIPG Malaysia Real Estate Investment Trust will debut on Bursa Malaysia’s Main Market with an initial fund size of 5.5 billion units, IOI Properties said in a filing late last week, as cited by Bernama.
The trust will acquire nine properties from IOI Properties subsidiaries for RM7.58 billion in total, including the IOI City Mall worth RM5.1 billion and a suite of premium hotels and other assets.
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The IOI City Mall in Malaysia. Photo from the company’s website |
The acquisition will be funded by the issuance of 5.5 billion units at RM0.90 each, along with RM2.65 billion in cash to be financed through sukuk issuance.
The Securities Commission Malaysia’s approval is subject to conditions that include maintaining 12.5% Bumiputera equity participation and carrying out operational audits after the trust is listed, The Star reported.
IOI REIT Management, which will manage the trust, will also need to obtain the regulator’s approval for a fund management license restricted to REITs and submit an operational audit report within six months after the listing.
Shares of IOI Properties closed last Friday at RM3.98 each, putting its market value at RM21.9 billion, according to The Edge Malaysia.
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Billionaires Lee Yeow Chor (L) and Lee Yeow Seng. Photo from IOI Group’s website |
IOI Properties is part of a business empire that also has interests in palm oil and is controlled by brothers Lee Yeow Chor and Lee Yeow Seng, who ranked third among Malaysia’s richest people with a combined net worth of US$8.5 billion in April, trailing only the Koon brothers of Press Metal and tycoon Robert Kuok, according to Forbes.