IOI Properties pursues Singapore hotel and office acquisitions
The Malaysian developer is also planning a private property fund as it seeks to reduce debt and finance further expansion.
Malaysia’s IOI Properties is pursuing further acquisitions in central Singapore, including Chijmes and the Capitol Kempinski hotel, while preparing a private fund to help reduce its borrowings. Bloomberg reported, citing group CEO Lee Yeow Seng, that exclusive negotiations and due diligence were under way for the two properties.
Capitol Kempinski had been offered for sale at about S$600 million, according to Bloomberg. Chijmes, a retail destination occupying a former Catholic convent on Victoria Street, carried a valuation of S$379 million at the end of 2025.
IOI is separately pursuing a joint purchase of One Raffles Place with CapitaLand Investment. OUE REIT confirmed that exclusive negotiations were taking place over the potential deal. Its indirect subsidiary, OUB Centre, holds an 81.54% stake in the property.
The developer has also agreed to purchase Shenton House from Lee, who bought it personally, and acquired Asia Square Tower 2. IOI plans to replace Shenton House with a mixed-use project incorporating a luxury hotel with 165 rooms.
The purchases have increased IOI’s borrowings: at the end of June, its net debt stood at 85% of equity. Lee aims to lower that ratio to 30%-50% over the next three to five years.
To release capital, IOI is seeking investors for a private fund. Lee plans to put IOI Central Boulevard Towers and South Beach’s office component into the fund first. Those assets have a combined value of S$6 billion. The company intends to add properties later and ultimately list the fund as a real estate investment trust.
IOI is also proceeding with a proposed Malaysian REIT listing. Separately, The Edge Singapore reported that the Malaysia-listed developer was discussing a secondary listing on the Singapore Exchange.
