$IOIPG / 5249 (IOI PROPERTIES GROUP BERHAD): Plans for REIT Listing? 🏘️

Recent acquisition activity suggests that IOI Properties is gearing up to establish a REIT. IOI Properties has completed four significant acquisitions from $TROP / 5401 (TROPICANA CORPORATION BERHAD), including W Hotel KL, Courtyard Penang, land in Pantai Kok, Langkawi for hotel development, and Tropicana Mall. The acquisitions of the hotels and mall cost RM1.13B, while the land acquisition cost RM90.1M. The combined value of these assets meets the requirements for a REIT listing, with the Tropicana Mall acquisition being particularly noteworthy due to its discounted price, likely influenced by its low occupancy rate.

In addition to these recent acquisitions, IOI Properties owns a substantial portfolio of assets, including retail malls, hotels, and office towers:

Retail Malls: IOI City Mall, IOI Mall Puchong, IOI Mall Kulai
Hotels: Putrajaya Marriott Hotel, Moxy Putrajaya, Palm Garden Hotel Putrajaya, Four Points by Sheraton Putrajaya, Le Méridien Putrajaya Hotel
Office Towers: PFCC, IOI Square, IOI City Towers, IOI Central Boulevard Towers in Singapore

These holdings indicate that IOI Properties has met the requirements to establish and list a REIT. The key question is when this will happen. In my view, the company may be addressing the occupancy rates of its recent acquisitions and existing assets and completing the hotel development in Langkawi before moving forward with the REIT. At that point, IOI Properties will have a substantial asset base from which to select properties for the REIT.