IOI Properties seeks 50% stake in Singapore’s One Raffles Place
The group and a CapitaLand Investment-managed entity have submitted a joint expression of interest, with due diligence and exclusive negotiations under way.
IOI Properties Group Bhd is seeking half-ownership of Singapore’s One Raffles Place through a proposed joint acquisition. In a Bursa Malaysia filing, the group said its expression of interest covered the entire commercial development, with ownership to be split 50:50 with an entity under CapitaLand Investment Ltd’s management.
The company said due diligence was under way alongside exclusive negotiations with the vendors. The parties aim to settle definitive agreements and other transaction documents, conditional on satisfactory due diligence within the exclusivity period.
Interest from IOI Properties and CapitaLand Investment was reported as early as August, when the property’s reported valuation was S$2.4 billion (RM7.65 billion). OUE REIT holds 81.54% through a subsidiary. United Overseas Bank owns the other 18.46% and uses some of the premises.
Located in Singapore’s central business district, the complex has two office towers and a retail podium. Completed in 1986, Tower 1 has 62 storeys and rooftop retail. Tower 2, completed in 2012, has 38 storeys, ancillary retail and a basement. The retail podium spans five storeys and also has a basement.
IOI Properties said shareholders would receive updates as material developments occur, with further Bursa Malaysia announcements to include any signing of definitive agreements.
