Lee Yeow Seng, the CEO and key shareholder of Malaysia's IOI Properties Group, has announced the acquisition of Shenton House, one of the oldest buildings located in Singapore's central business district. The purchase price for the historic property, built in the 1970s, amounts to $394 million. The approval of the sale to Lee's private company, Shenton 101, is subject to the Strata Titles Board's approval, according to property marketing agent JLL.
Once the required approvals are obtained, Lee plans to transform the strategically located site into a premier Grade A office building and luxury branded service residences. Recognizing the limited supply of Grade A offices and luxury rentals in the core central business district area, the redevelopment of Shenton House on its 3,377 square meter site is expected to further revitalize Shenton Way.
Tan Hoon Boon, executive director of JLL Capital Markets, lauded the purchase as a testament to the appeal of Singapore's office sector and rental market. The move comes shortly after the sale of Far East Shopping Centre to Chinese tycoon Du Shuanghua's Glory Property Development for $910 million in September, signaling continued investor interest in the Singapore property market.
IOI Properties has been actively investing in the Singapore central business district in recent years. The Kuala Lumpur-based company is nearing completion on IOI Central Boulevard Towers, a Grade A office tower near Shenton House. Additionally, it is involved in the construction of Marina View Residences, which is part of a mixed-use hotel, residential, and commercial complex in Marina Bay.
Apart from these developments, IOI Properties also holds interests in other Singapore assets, such as the South Beach Development, jointly developed with billionaire Kwek Leng Beng's City Developments, and Cape Royale on Sentosa Island, in partnership with tycoon Chua Thian Poh's Ho Bee Land.
The wealth of Lee Yeow Seng and his brother, Yeow Chor, stems from inheriting their late father Lee Shin Cheng's palm oil and property empire. Lee Shin Cheng, who passed away in June 2019, built the IOI Corporation and IOI Properties from humble beginnings on a rubber plantation. With a net worth of $4.6 billion, the brothers ranked No. 6 on Malaysia's 50 Richest list earlier this year. IOI Corporation and IOI Properties are collectively known as the IOI Group.