IOI Properties Group Berhad’s chief executive said on October 15, 2026, that the Malaysian developer is in exclusive talks and due diligence to buy Chijmes and the nearby Capitol Kempinski hotel in Singapore’s civic district, in a potential deal reported at around US$760 million. The talks extend IOI Properties’ acquisitions in Singapore at a time when its borrowings have risen sharply, and the company told Bursa Malaysia a day later that its board has not yet deliberated on the matter.
Key Facts At A Glance
- IOI Properties Group Berhad is in exclusive talks and due diligence to acquire Chijmes and the Capitol Kempinski hotel in Singapore.
- Perennial Holdings has been marketing the Capitol Kempinski hotel for about S$600 million, according to people familiar with the matter.
- Chijmes was valued at S$379 million at the end of 2025.
- In an October 16, 2026, bourse filing, IOI Properties said its board has yet to deliberate on the potential acquisition.
- IOI Properties’ net debt rose to 85% of equity as of end-June 2026.
- For the quarter ended June 30, 2026, the group reported total borrowings of RM25.45 billion against cash equivalents of RM2.1 billion.
- IOI Properties shares closed 2.47% lower at RM3.16 on October 16, 2026, valuing the group at RM17.4 billion.
IOI Properties Group Berhad, the Malaysian property developer led by chief executive Datuk Lee Yeow Seng, is in exclusive talks and due diligence to purchase two Singapore assets: Chijmes, a retail venue housed in a former Catholic convent, and the nearby Capitol Kempinski hotel. Lee disclosed the negotiations in an interview but declined to say how much a final agreement would value the two assets, citing ongoing talks.
Singapore developer Perennial Holdings has been trying to sell the Kempinski hotel, which was marketed for about S600million(US468 million), according to people familiar with the matter. Chijmes was valued at S379 million at the end of 2025. The Star reported the potential transaction at around USD760 million.
Ownership And Repositioning Plans
Perennial controls about one-third of Chijmes and about 80% of Capitol Singapore, the larger complex that includes the hotel, a retail mall and residential units. Other Chijmes investors include food chain BreadTalk Group and Ronald Ooi, the former chair and chief executive of stock brokerage Kim Eng.
Lee said IOI Properties is in talks to bring high-end fashion brands into Chijmes to lift rents, which he said have been held down by a concentration of food and beverage outlets. The company also wants a global ultra-luxury hotel brand to replace Kempinski at the Capitol property.
Board Position And Balance Sheet
In a filing with Bursa Malaysia on October 16, 2026, IOI Properties said its board has not yet deliberated on the potential acquisition of the Singapore properties mentioned by its chief executive in the media report. The company said it routinely evaluates potential acquisition opportunities as part of its long-term growth strategy.
IOI Properties owns about S$12 billion of prime Singapore office space. Within a fortnight it had announced the purchase of Shenton House and a potential acquisition of a 50% stake in One Raffles Place. Its acquisitions have contributed to a record year for real estate deals in Singapore. They have also driven up its borrowings: net debt reached 85% of equity as of end-June. For the quarter ended June 30, 2026, the group reported total borrowings of RM25.45 billion against cash equivalents of RM2.1 billion.
The company is courting investors for a new fund intended to ease the debt burden and make room for further expansion. Not every Singapore project has gone to plan: the company’s proposed city-centre luxury residential development of 683 homes has stumbled.
IOI Properties shares closed eight sen, or 2.47%, lower at RM3.16 on October 16, 2026, valuing the group at RM17.4 billion. Publicly available information on proposed deal terms, financing structure and timeline remains limited.