IOI Properties halves the debt paydown from its RM7.58bil REIT and doubles the money for new property

IOI Properties Group has changed its mind about what to do with the roughly RM4.66 billion it will raise from listing IOIPG Malaysia REIT. In a Bursa filing on 14 September, the group halved the amount going to debt repayment, from RM3.04 billion to RM1.53 billion, and doubled the amount for property development and investment, from RM1.55 billion to RM3.07 billion. The REIT itself was constituted on 11 September, the nine sale agreements are signed, and the six hotel master leases are in place. Listing is still targeted for the fourth quarter.

The revision is a statement of intent. In April the REIT read as a deleveraging exercise; now two-thirds of the money is going back into building and buying.

The nine assets

Below is the full portfolio going into the REIT, with the sale price to the REIT and Knight Frank’s appraised value at 31 May 2026, which lifted the portfolio from RM7.58 billion to RM7.66 billion — so the REIT is buying at a 1.1% discount.

Retail

• IOI City Mall, IOI Resort City, Putrajaya — sale price RM5.10 billion, appraised RM5.15 billion. Malaysia’s largest mall at about 2.5 million sq ft of net lettable area since Phase 2 opened in August 2022. Derived: about RM2,040 per sq ft of lettable area. It is 67% of the portfolio by price

Offices

• IOI City Towers, IOI Resort City, Putrajaya — sale price RM540 million, appraised RM551 million. Two Grade A towers with a combined approximately 967,749 sq ft of net lettable area (Tower 1: approximately 485,613 sq ft; Tower 2: approximately 482,136 sq ft). Derived: about RM558 per sq ft
• PFCC Towers, Puchong Financial Corporate Centre, Bandar Puteri Puchong — sale price RM440 million, appraised RM447 million. IOI describes PFCC as four office towers with about 850,000 sq ft of lettable space in total, MSC-status and GBI-certified, linked by bridge to the Taman Perindustrian Puchong LRT station. Derived: about RM518 per sq ft if all four towers are included

Hotels — all six are leased back to IOI Properties companies under long-term master leases signed on 11 September, with a guaranteed minimum rent plus a performance-linked share

• Putrajaya Marriott Hotel, IOI Resort City — sale price RM256 million, appraised RM266 million. Approximately 487 rooms including 35 suites. Derived: about RM526,000 a room
• Le Méridien Putrajaya, IOI Resort City — sale price RM343 million, appraised RM343 million. About 350 rooms. Derived: roughly RM980,000 a room
• Moxy Putrajaya, IOI Resort City — sale price RM214 million, appraised RM222 million. About 480 rooms. Derived: roughly RM446,000 a room
• Four Points by Sheraton Puchong, PFCC — sale price RM128 million, appraised RM128 million. Approximately 249 rooms. Derived: about RM514,000 a room
• W Kuala Lumpur, Jalan Ampang — sale price RM391 million, appraised RM391 million (cut from RM394 million in July over a 3,649 sq ft void area outside the strata titles). 150 rooms. Derived: about RM2.6 million a room, the most expensive key in the portfolio
• Courtyard by Marriott Penang, Jalan Macalister, George Town — sale price RM166 million, appraised RM166 million. 199 rooms, opened 2020. Derived: about RM834,000 a room

By sale price the REIT is 67% retail, 20% hotels and 13% offices. Everything except the Penang hotel sits in the Klang Valley: seven of nine assets are in IOI’s own Putrajaya and Puchong townships, and W Kuala Lumpur is the one city-centre asset.

The only Penang asset, and the only one that lost value

Courtyard by Marriott Penang is the portfolio’s single asset outside the Klang Valley:

• Tropicana built it and sold it to IOI Properties’ unit IOI PFCC Hotel Sdn Bhd for RM165 million in January 2024, booking an RM80.8 million surplus
• Knight Frank appraised it at RM173 million in October 2025 for the REIT plan, then cut it to RM166 million at 31 May 2026 — a 4% fall, the only decline in the portfolio while IOI City Mall, IOI City Towers, PFCC, the Putrajaya Marriott and Moxy all rose
• The REIT is buying it at RM166 million, so IOI Properties recovers its purchase price plus 0.6% after two and a half years
• Of the RM1.53 billion now going to debt, RM435 million is specifically to repay the borrowings on W Kuala Lumpur and Courtyard by Marriott Penang, so the hotel is being unencumbered as it enters the trust

At RM834,000 a room it sits between the Putrajaya business hotels at roughly RM450,000 to RM530,000 and the W at RM2.6 million, and a shade below Le Méridien. For an owner of a mid-market branded hotel on the island, that is the first institutional mark on a George Town hotel since the pandemic.

How the money moves

• What the REIT pays: RM7.578 billion — 5.5 billion units at a revised 91 sen (RM5.0 billion) plus RM2.65 billion cash, the cash raised by a sukuk at REIT level. Derived: the REIT lists with gearing of about 35% of asset value
• What IOI Properties sells: up to 2.2 billion units, or 40% of the REIT — 550.61 million to its own shareholders on a one-for-ten restricted offer, 55 million to eligible persons, 110 million to the Malaysian public, and up to 1.48 billion to institutions including 687.5 million for MITI-approved Bumiputera investors. At 91 sen that is about RM2.0 billion
• Total to IOI Properties: RM2.65 billion cash consideration plus about RM2.0 billion from the offering = RM4.66 billion, or RM4.96 billion if the over-allotment option is exercised. IOI keeps 60% of the REIT
• Original plan (10 April): RM3.04 billion (65.6%) to repay borrowings within 12 months; RM1.55 billion (33.6%) to development and investment within 24 months
• Revised plan (14 September): RM1.53 billion (32.9%) to borrowings — RM435 million on the two hotel loans, RM1.095 billion on other debt, now within six months; RM3.07 billion (66%) to development, property investment and related activities, now within 12 months. The balance of about RM60 million covers expenses

IOI Properties reported a record FY2026 to 30 June: revenue up 45% to RM4.44 billion, net profit more than doubled to RM2.15 billion, dividend doubled to 16 sen. Its shares closed at RM3.70 on 14 September, a market value of RM20.4 billion, up more than 80% in a year. The Edge reported in April that the group is separately weighing a Singapore REIT for its South Beach Tower and IOI Central Boulevard assets in 2027.

The first IPO since 2013 for a Malaysian mall of this size.

At RM5.1 billion for 2.5 million sq ft, IOI City Mall alone would be the second-largest single asset in any Malaysian REIT. Its RM2,040 psf is the number every regional mall owner — including on the mainland, where Waterfront Shoppes at The Light City opens next month — will be measured against.

*Cover photo: IOI Properties Group. Courtyard by Marriott Penang photo: Marriott International, via EdgeProp. Valuations and sale prices per property are from IOI Properties’ Bursa Malaysia announcement of 23 July 2026 (Appendix I); proceeds figures from the announcement of 14 September 2026 as reported by The Edge.*