Malaysian billionaire brothers, Lee Yeow Chor and Lee Yeow Seng, are rethinking what to do with their massive property portfolio across Singapore and Malaysia.
Their company, IOI Properties, owns a mix of office buildings, shopping malls, hotels, and new residential projects. Now, they’re exploring new strategies to grow, manage debt, and possibly sell or restructure some of their assets.
Singapore: Still the Star Player
Singapore is a major part of IOI’s business, making up 64% of its total portfolio. Here’s what they’ve built:
- IOI Central Boulevard Towers: A top-grade office complex in Marina Bay. It’s already half-leased to big names like Amazon and Morgan Stanley. Estimated value: S$4 billion (US$3 billion).
- Marina View: A new mixed-use project with luxury homes and a 350-room W Hotel, opening in 2028. Total value: RM8.5 billion (~US$1.8 billion).
- Shenton House Redevelopment: IOI recently bought this old office building and plans to redevelop it into a modern tower in the CBD.
These projects show IOI’s strong confidence in Singapore’s long-term value—even if it means taking on more debt.
Malaysia: A New Focus for Growth
Back home in Malaysia, IOI is growing fast in different areas:
- Shopping Malls & Hotels: They’ve recently bought the Tropicana Gardens Mall and added hotels like W Kuala Lumpur and Courtyard by Marriott Penang.
- Industrial Land: IOI is now selling industrial land in Banting, Johor, and Melaka, tapping into demand from factories and logistics firms.
- More Hotels Coming: New hotel projects in Langkawi and China are also on the way. Hotel income grew 85% last year!
What’s Next? Sell, List, or Partner?
IOI is currently reviewing its strategy, and options could include:
- Selling Some Assets: To reduce debt and free up cash.
- Listing a REIT (Real Estate Investment Trust): This means packaging some properties into a listed investment product that earns rental income.
- Finding New Partners: Like their joint venture with Hongkong Land to share development costs.
Analysts believe IOI might need to do this soon, as gearing (debt compared to equity) could rise to 0.93×, especially after buying more stakes in South Beach (Singapore).
