IOI Properties eyes growth with RM1.21B subsidiary acquisition spree, including Tropicana Gardens Mall and W Kuala Lumpurđź’°
KUALA LUMPUR, July 23 — IOI Properties Group Bhd’s subsidiaries have entered into four sale and purchase agreements (SPAs) via its subsidiaries for several acquisitions in Malaysia.
In a filing with Bursa Malaysia today, the property developer said wholly owned subsidiary IOI Mall Damansara Sdn Bhd had entered into a conditional SPA with Tropicana Indah Sdn Bhd to acquire Tropicana Gardens Mall and its assets in Tropicana Indah, Petaling Jaya for RM680 million.
The percentage ratio for the acquisition represented 3.05 per cent of the group’s total net assets of RM22.29 billion and is expected to be completed in the first quarter of 2025.
Meanwhile, IOI Properties’ indirect 99.9 per cent owned subsidiaries IOI Business Hotel Sdn Bhd and Flora Development Sdn Bhd entered into a conditional SPA agreement with Tropicana Residences Sdn Bhd to acquire W Kuala Lumpur hotel and its assets in Jalan Ampang, Kuala Lumpur for RM270 million.
Meanwhile, IOI Business Hotel had entered into a conditional SPA with Tropicana Macalister Avenue (Penang) Sdn Bhd for the acquisition of Courtyard by Marriott Penang hotel and its assets in Jalan Macalister, George Town for RM165 million.
IOI Properties said the acquisitions were completed on February 8, 2024 and July 22, 2024 respectively.
IOI Business Hotel had also entered into a conditional SPA with Pantai Kok Resort Development Sdn Bhd to buy 3.99 hectares of freehold land in Pantai Kok, Teluk Burau in Langkawi for RM90.1 million.
The group said the acquisition would be completed in the third quarter of 2024.
IOI Properties said all the acquisitions were in line with its strategy to acquire and invest in high-quality investment properties and hospitality assets with the objective of increasing contributions and portfolio of its property investment and hospitality/leisure segments which historically have been grown organically.
“The board is optimistic on the prospects of the acquisitions to enhance the group’s financial performance,” it added.
IOI Properties said the purchase consideration for the acquisitions would be satisfied by cash through a combination of internal funds and/or bank borrowings. — Bernama
Malay Mail
