Malaysia’s IOI Properties is doubling down on its investments in Singapore’s Marina Bay financial district with the acquisition of Asia Square Tower 2.
© 2024 Bloomberg Finance LP
IOI Properties Group—controlled by Malaysian billionaire brothers Lee Yeow Chor and Lee Yeow Seng—is buying a prime office building in Singapore for S$2.5 billion ($2 billion), expanding its footprint amid a property boom in one of the world’s most expensive real estate markets.
The Bursa Malaysia-listed developer will acquire 100% stake of Asia Square Tower 2, located in the center of Marina Bay financial district from CapitaLand Integrated Commercial Trust. The 46-story skyscraper is a premium office building with 72,343 sqm of net leasable space and counts Japan’s Mizuho Bank and Germany’s Allianz among its key tenants. The acquisition will boost IOI Properties’ presence in Singapore’s CBD, adding to its portfolio that includes IOI Central Boulevard Towers and South Beach Tower.
“This latest acquisition reflects IOI Properties Group’s continued conviction in prime Singapore assets, which offer stable recurring income streams supported by strong market fundamentals,” Lee Yeow Seng, group CEO of IOI Properties Group said in the statement.
Once the deal is completed by the third quarter this year, IOI Properties will have S$10 billion of assets under management with a total leasable area of 2.6 million square feet in Singapore. The deal comes as CapitaLand separately announced the acquisition of the Paragon shopping complex in the Orchard Road shopping precinct for S$3.9 billion.
Singapore’s booming property market has been attracting investors seeking safe haven investments amid rising geopolitical tensions in the world. Investment volumes in Singapore hotels, offices and retail assets climbed 18% to S$34 billion in 2025, the highest in eight years, driven by lower interest rates in the Lion City, according to real estate consultants CBRE. In February, Frasers Property—controlled by Thai billionaire Charoen Sirivadhanabhakdi—bought part of the Centrepoint shopping mall on Orchard Road for S$392 million, paving the way for future redevelopment.
IOI Properties has also been steadily expanding in Singapore, where the Lee family is among the largest commercial property landlords. In September, it bought the remaining 50% stake in the South Beach mixed-use development from Kwek Leng Beng’s City Developments for S$835 million.
The siblings are planning to launch two REITs—one in Malaysia and one in Singapore—between this year and next year. The combined assets are valued at about $8 billion, including roughly $2 billion in Malaysian properties. IOI Properties aims to raise 2 billion ringgit ($500 million) by listing its Malaysian REIT in the fourth quarter of 2026, while it prepares a separate REIT listing for the Singapore assets within the next two years.
With a combined net worth of $8.5 billion, the Lee brothers are among the wealthiest in Malaysia. They are the sons of the late Lee Shin Cheng, who built a thriving palm oil and property business until his death in 2019. Lee Yeow Chor runs the palm oil business under separately listed IOI Corp, while his younger brother Yeow Seng helms the real estate company.
Read More
Yessar Rosendar