IOIPG's Acquisition Of Scottsdale Properties A Strategic, Value-accretive Move - HLIB
KUALA LUMPUR, June 5 (Bernama) -- IOI Properties Group Bhd’s (IOIPG) proposed acquisition of Scottsdale Properties Pte Ltd is viewed as a strategic and value-accretive move, Hong Leong Investment Bank (HLIB) said.
The investment bank said Scottsdale Properties, the holding company for the South Beach mixed-use development in Singapore, comprises a portfolio of prime, familiar assets. The transition from a 49.9 per cent joint venture stake to full ownership unlocks several key advantages.
This includes full strategic control, and IOIPG would be able to independently shape asset enhancement strategies, tenant mix decisions, and long-term capital improvements.
It also said the enlarged Singapore portfolio enables efficient resource sharing for its Singapore team across asset management, leasing, and operations.
Furthermore, the South Beach assets are already income-generating and provide an immediate boost to IOIPG’s earnings base and recurring income stream.
IOIPG yesterday announced that it would acquire the remaining 50.1 per cent stake in Scottsdale Properties from City Developments Ltd (CDL) for a total consideration of S$834 million (RM2.75 billion).
The purchase consideration is based on 50.1 per cent of the consolidated net assets of Scottsdale group as at April 30, 2025.
IOIPG, which already owns a 49.9 per cent stake, would assume full ownership of the South Beach development on completion of the transaction.
"Post-acquisition, IOIPG cements its status as one of the largest asset owners not only in Singapore, but also a growing regional real estate powerhouse," said HLIB.
It said this diversified footprint provides defensive stability and growth opportunity, reinforcing IOIPG’s position as a compelling proxy for long-term property sector upside across the region.
The investment bank maintained its “Buy” call with an unchanged target price (TP) of RM4.05, based on a 35 per cent discount to its estimated restated net asset value (RNAV) of RM6.24.
As at 10.17 am, IOIPG's share price was 1.0 sen higher at RM1.91 with 312,300 shares traded.
-- BERNAMA