Here’s what changes and why it matters: IOI Properties is weighing a dual-REIT strategy to monetise parts of its portfolio and broaden its investor base. According to Reuters, the company “is exploring two real estate investment trust listings” with “a combined asset value of up to $8 billion.” The plan splits assets across Malaysia and Singapore to match investor preferences and listing rules.
By the numbers:
- Two proposed REITs: one in Malaysia, one in Singapore, per Reuters.
- Up to $8 billion in combined assets under consideration.
- A staggered timetable: 2026 for Malaysia, 2027 for Singapore.
Zoom in: The structure aims to align assets with markets known to value them
Malaysian properties would anchor a home-market vehicle, while marquee Singapore holdings would help seed a Singapore-listed trust. This sequencing could provide optionality on pricing, timing, and investor mix.
Background: IOI Properties’ REIT Ambitions
IOI Properties is evaluating a two-REIT path that separates domestic and Singapore assets, according to Reuters. The approach allows the company to position different property clusters for different investor pools. It also introduces greater transparency around asset performance within each market.
Moreover, the combined scale under consideration is notable. Reuters reports the company is weighing assets “with a combined asset value of up to $8 billion.” That headline number sets expectations for portfolio breadth and potential investor interest.
Additionally, IOI Properties’ plan reflects a broader monetisation theme. Reuters quotes the company as “strategically considering and reviewing various possibilities with regard to monetising our assets and capital management.” The upshot: a REIT format could shift part of the capital stack toward public market investors while retaining strategic control.
Planned Timeline and Listing Venues
Reuters reports a clear sequencing: Malaysia first, then Singapore. The Malaysian REIT is “looking to list… on Bursa Malaysia in 2026,” while the Singapore REIT aims for a 2027 debut “on SGX.” This cadence staggers execution and may reduce operational strain.
However, execution windows can move with market conditions. Timelines are targets, not firm commitments, according to available reports. Still, the stated schedule provides a working roadmap for investors and partners.
By the numbers (timing and venues):
- Bursa Malaysia listing targeted in 2026 for the Malaysia REIT.
- SGX listing targeted in 2027 for the Singapore REIT.
- Staggered listing plan to sequence funding and investor outreach.
Zoom in: Staging matters because it lets IOI learn from the first listing. Lessons from the Malaysia REIT’s pricing, demand, and investor feedback could inform the Singapore launch. Consequently, that iteration loop can sharpen disclosures and portfolio composition the second time around.
Asset Composition of Each REIT
Reuters outlines an initial split of assets by geography and profile. The Malaysian REIT is “expected to include domestic assets valued at around 7 billion to 8 billion ringgit,” suggesting a sizable pool of income-generating properties. Meanwhile, the Singapore REIT is “expected to comprise assets worth S$7 billion to S$8 billion.”
Additionally, the Singapore vehicle may feature high-profile downtown assets. Reuters notes it “may include marquee properties such as South Beach Tower, South Beach Avenue, and IOI Central Boulevard Towers.” Those assets can anchor a yield profile and support index inclusion if size and free float align with local rules.
By the numbers (portfolio split):
- Malaysia REIT: RM7–8 billion in domestic assets under consideration.
- Singapore REIT: S$7–8 billion in assets potentially including South Beach Tower and IOI Central Boulevard Towers.
- Combined headline value: up to $8 billion across the two vehicles.
Furthermore, segmenting assets can support a cleaner narrative for each trust. Domestic retail, office, or mixed-use assets can be presented within Malaysian market dynamics. In turn, Singapore’s prime commercial assets can be benchmarked against SGX-listed peers.
Outstanding Deal Uncertainties
Despite the visible framework, several items remain open. Reuters reports the company “has yet to decide the amount to be raised or the final asset mix.” That means unit count, gearing profiles, and sponsor stakes are still in flux.
For now, the final composition of each REIT is a shaping exercise. Asset selection typically balances yield stability, growth prospects, and concentration risk. However, Reuters has not detailed these metrics, and deal terms remain under review.
Still, the staged timeline provides room to refine decisions. Feedback from bankers, regulators, and prospective cornerstone investors can influence sizing and structure. Therefore, investors should expect iterative disclosures closer to listing windows.
Strategic Rationale and Future Outlook
Reuters cites IOI Properties saying it is “strategically considering and reviewing various possibilities with regard to monetising our assets and capital management.” The company also frames potential REITs, particularly for Malaysian assets, as “part of its 2026 strategic plans aimed at diversification, boosting earnings and ensuring long-term stability.” That articulation links the transactions to broader balance-sheet and portfolio goals.
Zoom in: A REIT platform can create recurring public-market access for asset recycling. While specific fundraising amounts are undecided, a listed trust offers a vehicle for future injections, subject to performance and market appetite. Additionally, public REIT governance can standardise reporting and valuation cadence.
Balanced view:
- Pros: Potentially clearer asset visibility, recurring access to capital, and a diversified investor base.
- Cons: Ongoing disclosure requirements, market-driven pricing, and execution complexity across two jurisdictions.
What’s next: Watch for signals on seed portfolios, sponsor ownership, and gearing ranges. Those details will shape yield targets, credit metrics, and index eligibility. Moreover, they will influence how the two trusts trade relative to peers upon debut.
Furthermore, the choice of cornerstone investors, if any, can help anchor bookbuilds and bolster confidence. While Reuters has not specified investor names, early soft circles often guide allocation outcomes. Consequently, the investor mix could affect trading stability in the first weeks.
For now, IOI’s messaging centres on optionality and staged execution. The company has outlined its intent and timing, while preserving room to adjust structures. Therefore, the near-term milestone is likely a clearer asset roster for the Malaysia REIT.
The upshot: IOI Properties is sketching a two-market REIT roadmap with sizable assets and staggered execution. According to Reuters, both vehicles remain in the evaluation phase, with key terms undecided. Still, the framework suggests a monetisation strategy aligned with 2026 priorities and a follow-on listing in Singapore the year after.
