IOI Properties to acquire Lee Yeow Seng’s Shenton House vehicle for $1
The acquisition signals renewed developer confidence in prime CBD redevelopment and could add substantial Grade-A office and hotel supply through the planned $1.61 billion project.
IOI Properties agreed to acquire the Shenton House holding vehicle for $1, assuming $217.6 million in shareholder advances and consolidating about $376.23 million of borrowings.
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Malaysia-listed IOI Properties Group (IOIPG) has agreed to acquire Shenton 101, the private vehicle owned by its group CEO and major shareholder Datuk Lee Yeow Seng that holds Shenton House, for a nominal $1.
Under the conditional agreement announced on Oct 1, IOIPG will also settle about $217.6 million in shareholder advances that Lee had injected into Shenton 101. Upon completion, the company will consolidate Shenton 101’s borrowings of about $376.23 million into its accounts. Both amounts were as at July 31, 2026.
The transaction reverses the August 2024 decision, when IOIPG’s non-interested directors rejected an earlier proposal by Lee to sell Shenton 101 to the group, citing its heavy capital commitments at the time.
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Lee had acquired Shenton House in his personal capacity through Shenton 101 for $538 million in a collective sale tender in November 2023. The acquisition was completed in June 2024.
IOIPG said Lee had originally proposed transferring the property to the group to avoid a potential conflict of interest. Following the 2024 rejection, IOIPG instead entered into project and property management agreements to manage Shenton House and its redevelopment without holding any economic interest in the property.
Why IOI Properties revisited the deal
The group said it is revisiting the acquisition at Lee’s request as its “circumstances and strategic position have evolved”.
IOI Central Boulevard Towers has since achieved committed occupancy of more than 95% and is self-sustaining in terms of debt servicing. IOIPG has also completed the acquisition of the remaining 50.1% stake in Scottsdale Properties, which owns South Beach Tower, South Beach Avenue and JW Marriott Hotel Singapore South Beach, as well as Asia Square Tower 2.
IOIPG said acquiring Shenton 101 would strengthen its presence in the Marina Bay precinct and allow it to benefit from the redevelopment’s potential profits and capital appreciation. Shenton House is within walking distance of IOI Central Boulevard Towers and Asia Square Tower 2.
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Source: EdgeProp Landlens
$1.61 bil Shenton House redevelopment
The existing 25-storey strata-titled commercial building at 3 Shenton Way sits on a 36,350 sq ft site. It is zoned commercial with a gross plot ratio of 11.2 under the 2019 Master Plan and has a 99-year lease from June 1969, leaving about 42 years remaining.
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Under the CBD Incentive Scheme, the site is eligible for a 25% bonus gross floor area, allowing a maximum gross plot ratio of 14.0 for a commercial and hotel redevelopment.
IOIPG plans to redevelop the property into a 35-storey mixed-use development comprising 12 floors of Grade-A offices, a 165-room luxury hotel spanning 10 floors, a retail basement and three carpark levels, along with sky terraces, restaurants and a swimming pool.
The redevelopment would increase the property’s net lettable area from 218,246 sq ft to about 393,185 sq ft. The underlying land tenure is expected to be renewed to a fresh 99-year lease, subject to the requisite approvals and payment of a lease renewal premium.
Savills valued Shenton House as a redevelopment site at $585 million as at Aug 15, after deducting the land betterment charge and lease renewal premium. The proposed redevelopment has an estimated gross development value of $1.61 billion, with redevelopment costs estimated at $973.65 million.
URA granted provisional permission for the redevelopment on June 8, although written permission remains outstanding. Construction is expected to begin in 1H2027 and be completed in 4Q2031, subject to approvals.
The acquisition will be funded from IOIPG’s internally generated funds. It does not require approval from non-interested shareholders as its transaction ratio of 3.79% is below the 5% threshold under Bursa Malaysia’s listing rules.
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Lee and his brother, Datuk Lee Yeow Chor, who is also deemed interested in the transaction, abstained and will continue to abstain from board deliberations and voting on the proposal.
Completion, targeted for 4Q2026, remains subject to several conditions, including approval from Bank Negara Malaysia for investment in foreign-currency assets beyond the group’s permissible limit, consent from Shenton 101’s lenders and the Singapore Land Authority, and a waiver of a right of first refusal held by Multi Wealth (Singapore) and its related companies.