Malaysia’s IOI Properties is committing billions of dollars to expand its footprint in Singapore’s Central Business District (CBD), reflecting a strategic focus on the city-state’s prime real estate market. Chief Executive Lee Yeow Seng emphasized the significance of location in property investment, identifying Marina Bay as Singapore’s most coveted address.
Speaking during the Forbes Global CEO Conference in Singapore on October 7, Lee highlighted Singapore’s reputation as a safe and stable environment, which he views as a key factor attracting high-net-worth individuals (HNWIs) to the country. He also pointed to recent geopolitical uncertainties, including conflicts in the Middle East, as reinforcing Singapore’s appeal as a secure haven for wealth preservation. This influx of affluent individuals, according to Lee, is expected to sustain demand for premium office spaces, luxury residences, and upscale hotels.
IOI’s portfolio in the CBD already includes significant assets such as IOI Central Boulevard Towers, developed after acquiring the site in 2016, and South Beach, fully owned by IOI following the buyout of City Developments Limited’s 50.1% stake for approximately S$885 million in September 2025. In April, IOI also purchased Asia Square Tower 2 from CapitaLand Integrated Commercial Trust for S$2.5 billion. The company, together with CapitaLand Investment, is currently conducting due diligence on a proposed acquisition of One Raffles Place, which features two office towers and a retail podium on an 841-year leasehold site valued between S$2.3 billion and S$2.4 billion. If completed, this deal would further strengthen IOI’s presence in Singapore’s Downtown Core.
Lee underscored the advantages of Singapore’s tightly controlled land supply, noting that no new land for Grade A office developments in the CBD has been released in about a decade. He expressed confidence that this restricted supply lends greater certainty to investors, helping support office rents that have increased markedly in recent years. For instance, rents at IOI Central Boulevard Towers have risen to nearly S$18 per square foot, up from around S$8 a decade ago, while Asia Square Tower 2’s rents have climbed from about S$11 to approximately S$13 to S$14 per square foot.
Despite the global rise of flexible work arrangements and government initiatives to decentralize commercial activities, Lee believes companies and employees continue to value the prestige and convenience of a downtown address. He cited proximity to transport links and amenities as factors that contribute to employee pride and satisfaction.
IOI is also expanding its luxury residential and hotel offerings. At Marina View, it is developing W Residences Marina View, a 683-unit project integrated with a W hotel comprising roughly 360 rooms. The residences offer residents access to hotel-style services, including dedicated butlers. The company also owns the JW Marriott hotel at South Beach, which has over 600 rooms, and plans to redevelop Senthon House by 2027 to add about 200 hotel rooms. Lee noted that while Singapore has an abundance of three- and four-star hotels and entry-level luxury accommodations, it remains underserved in the ultra-luxury hotel segment, missing brands such as Bulgari and Armani found in other global cities.
On future acquisitions, Lee indicated a preference for office properties over residential developments due to higher taxes on foreign buyers, including a 60% buyer’s stamp duty. He also suggested that the government’s current practice of awarding land mainly through competitive bidding could be contributing to rising home prices, urging a review to prevent continual price escalation.
IOI Properties is simultaneously looking to reduce its leverage, with debt standing at nearly 80% of shareholders’ equity. The group plans to monetize certain Singapore assets through a publicly listed real estate investment trust (REIT) and a separate private fund, with IOI Central Boulevard Towers and the South Beach office tower earmarked as initial assets for these vehicles.
Lee, the younger son of IOI Group founder Lee Shin Cheng, inherited control of the property business in 2019. While Malaysia remains IOI’s largest market dominated by retail and township developments, Singapore is its second-largest market, followed by Xiamen, China. Despite not disclosing specific future targets, Lee reaffirmed IOI’s focus on Marina Bay, calling it “the best address in Singapore.”