KUALA LUMPUR, April 21 (Bernama) -- IOI Properties Group Bhd’s shares rose in early trade following the announcement that its wholly owned subsidiary IOI Marina View Pte Ltd plans to acquire Asia Square Tower 2 in Singapore for S$2.48 billion (S$1=RM3.10).
In a note today, MBSB Investment Bank Bhd said the acquisition is expected to increase the group’s borrowings, with net gearing rising to 1.03 times, which may weigh on its balance sheet.
The building is a prime office asset with a committed occupancy rate of 95.3 per cent, anchored by tenants such as KPMG and Mizuho, it said.
The investment bank has maintained a “neutral” call on IOI Properties, with a target price of RM3.52, below its current price of RM3.83.
At 10.13 am, its shares rose three sen to RM3.86, with 390,200 shares traded.
-- BERNAMA
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