IOI Properties completes S$2.47b Asia Square Tower 2 deal

IOI Properties Group completed its purchase of Asia Square Tower 2 in Singapore on 17 September 2026, paying S$2.47 billion (RM7.95 billion) in cash for the 46-storey Marina Bay office tower. It is the largest single property acquisition ever made by a Malaysian developer and lifts IOI’s wholly owned Singapore investment portfolio to S$10 billion.

What happened

• 17 September 2026: IOI Marina View Pte Ltd, a wholly owned subsidiary, completed the acquisition of MVKimi (BVI) Limited, the company that indirectly owns the tower. Per the Bursa Malaysia filing, IOI settled a purchase consideration of S$1,196.7 million (RM3,844.8 million) and repaid S$1,277.5 million of shareholder loans (RM4,104.4 million), at Bank Negara’s rate of RM3.2128 per Singapore dollar
• 2 September 2026: all conditions precedent were met and IOI exercised its call option under the put-and-call agreement; the sale and purchase agreement was deemed signed that day
• 17 April 2026: the put-and-call option was signed with HSBC Institutional Trust Services, trustee of CapitaLand Commercial Trust, a sub-trust of CapitaLand Integrated Commercial Trust (CICT), at an agreed property value of S$2.476 billion — a S$50 million discount to Savills’ 12 April valuation and 9.9% above CICT’s own 31 December 2025 valuation of S$2.252 billion. CICT announced the sale alongside its S$3.9 billion purchase of the Paragon mall on Orchard Road from Cuscaden Peak

The building

Asia Square Tower 2, at 12 Marina View, is a 46-storey Grade A office tower with a two-storey retail podium, completed in September 2013, with about 773,000 sq ft of net lettable area and 95.8% occupancy at 31 March 2026. The Westin Singapore occupies the tower’s upper hotel floors under separate ownership. An elevated pedestrian bridge links it directly to IOI’s own IOI Central Boulevard Towers next door.

Derived: about S$3,200 per sq ft of lettable area, or RM10,300 per sq ft. BlackRock sold the same tower to CapitaLand Commercial Trust in September 2017 for S$2.094 billion (S$2,689 psf); IOI’s price is 18% higher, roughly 2% a year over nine years.

What IOI now owns in Singapore

With Asia Square Tower 2, IOI Properties says it holds S$10 billion of wholly owned and controlled investment property in Singapore’s central business district, with a combined 2.57 million sq ft of net lettable area across three assets:

• IOI Central Boulevard Towers — twin Grade A towers on the Central Boulevard white site IOI won in November 2016 for S$2.57 billion, completed in 2024
• South Beach — the Grade A South Beach Tower, the 634-room JW Marriott and retail, fully owned since IOI bought City Developments’ 50.1% stake for about S$834 million in June 2025, on a property value of S$2.75 billion
• Asia Square Tower 2 — this purchase, the third and largest piece

Still under construction on the Marina View site IOI won in September 2021 for S$1.508 billion: W Residences and a 350-room W Singapore – Marina View, due to open in 2028.

Chief executive Datuk Lee Yeow Seng called Singapore "a cornerstone market" and said assets in the Marina Bay precinct are "well-positioned to benefit from sustained demand, limited supply, and ongoing urban transformation."

The cost of it

Analysts flagged the balance sheet when the deal was announced. Sin Chew reported Galaxy Securities’ estimate that the tower would add about RM65 million a year of recurring profit at a 3.3% capitalisation rate and 2.3% cost of debt, but push IOI Properties’ net gearing from 0.76 times to 1.03 times, even after the Malaysian REIT listing planned for the end of 2026. The same note said the purchase "should pave the way" for IOI to list its Singapore assets as a REIT in 2027 to 2028 — the plan The Edge first reported, covering South Beach Tower and IOI Central Boulevard Towers, and which we noted in our IOIPG Malaysia REIT article.

*Photo: IOI Properties Group. Transaction figures are from IOI Properties’ Bursa Malaysia announcements of 2 and 17 September 2026 and its release of 20 April 2026.*