Ioi Properties Receives Proposal Ceo Jointly Develop Shenton House Singapore

IOI Properties Group Bhd (KL:IOIPG) has received a proposal from its group chief executive officer and major shareholder Lee Yeow Seng to participate in the development of Shenton House, a commercial property located in Singapore that his private vehicle has successfully tendered for, for S$538 million (RM1.9 billion).

According to a statement released by the company, Yeow Seng has proposed that IOIPG acquire all or part of his private vehicle, Shenton 101 Pte Ltd, which is planning to redevelop Shenton House. The redevelopment is scheduled to start at the end of 2025.

.

The upcoming development of Marina Gardens Lane Condo, as announced by Kingsford, is set to become a groundbreaking seafront residential project. Nestled alongside Singapore’s renowned landmarks such as Marina Bay Sands and Gardens by the Bay, this project aims to provide its residents with unparalleled views of the sea, making it a truly one-of-a-kind living experience. Located in the prestigious Marina South precinct, this development holds the unique distinction of being the first of its kind in the area. It is the inaugural parcel among five sites in the Marina South region that have been designated for sale. Positioned directly opposite another development site at Marina Gardens Crescent, this project has the potential to house approximately 775 residential units and 64,583 square feet of commercial space. Furthermore, its direct connection to the Marina South MRT Station adds to its appeal, making it an ideal choice for those seeking convenient and seamless transportation options. Zion Road Condo adds to the already impressive features of this upcoming development.

This proposal aims to address and mitigate the potential conflict of interest that will arise due to Yeow Seng’s role in the redevelopment of Shenton House through Shenton 101, in which he is the sole shareholder. It’s intended to align the interests of IOIPG with those of Shenton 101, which will hold the redeveloped property as an investment upon its successful redevelopment, the company said in its filing.

Lee Yeow Seng and his brother Datuk Lee Yeow Chor are major shareholders of IOIPG through their substantial shareholdings in Vertical Capacity Sdn Bhd, which holds 65.67% in the company.

Shenton 101 was the sole bidder of Shenton House, which is located in Singapore’s central business district. Yeow Seng had previously said that bidding for Shenton House through his private vehicle was more appropriate due to the size of the project and the tight timing set by the sales committee on the collective sale.

Shenton House covers 3,377 square metres and is designated for commercial use with a gross plot ratio (GPR) of 11.2. The property has a 44-year land lease, with the potential to be extended to a fresh 99-year lease.

“Furthermore, according to the Singapore’s central business district incentive scheme, Shenton House is eligible for a 25% bonus gross floor area, which can be redeveloped into a mixed-use commercial with residential development or a hotel at the GPR of 14. As such, Shenton House is earmarked for redevelopment into a fresh 99-year leasehold commercial development,” IOIPG said.

The current additional existing capital commitment, which excludes the development cost that has yet to be finalised, is S$476 million. This includes land betterment premium, lease top-up premium, and transaction expenses, the company said.

Yeow Seng has proposed that the purchase consideration be determined based on the actual cost of investment incurred by himself and Shenton 101, multiplied by the equity interest in Shenton 101 to be acquired by IOIPG, or an equivalent subscription value for the subscription of new shares in Shenton 101.

“The good faith intention of Yeow Seng is not to make a personal gain arising from the proposal. As such, the consideration is to include the initial cost of investment of equity in Shenton 101 and the cost incurred by Shenton 101 for the acquisition of Shenton House, along with any upfront costs such as consultants’ fees and expenses, tender, application, and approval costs, as well as cost of finance,” IOIPG added.

According to the company, the proposal is valid for four months and may be extended by another two months upon written request from IOIPG.

As of market close on Tuesday, IOIPG’s shares dropped four sen or 1.75% to RM2.25, giving the company a valuation of RM12.39 billion.