KUALA LUMPUR (Nov 7): IOI Properties Group Bhd (KL:IOIPG) has retracted a proposal on redevelopment of the Shenton House to be deliberated at a shareholders meeting on Thursday while it considers its options on the project.

“We are looking at different options,” chief executive officer Lee Yeow Seng told The Edge at the sidelines after the shareholders meeting. There is still time “to think about it to come out with the plan before redevelopment works commence”, he said.

The move follows a letter to the board dated Nov 6, 2024 from Lee, who is also the company’s major shareholder, requesting withdrawal of the resolution for the extraordinary general meeting in a bid to resolve the potential conflict of interest in the Singapore commercial property project.

In its letter, Lee wrote that the decision was made after taking into account feedback from various institutional shareholders. Lee is now considering the available options and plans to engage further with the institutional shareholders before the re-development begins in 2027.

Lee said IOI Properties may still undertake the redevelopment works of the commercial property “with the right timing and the right structure”.

In August, IOI Properties declined the offer to purchase Shenton House from Lee, citing an already significant exposure to the Singapore property market, as well as existing capital commitments following other recent acquisitions.

Shenton House was acquired by Lee’s private vehicle Shenton 101 Pte Ltd in a tender for S$538 million (RM1.9 billion) a year ago. It was the sole bidder for the property spanning 3,377 square metres and designated for gross floor area of 11.2 times the total land area.

The property has a 44-year land lease, with the potential to be extended to a fresh 99-year lease.

The plan was for Shenton 101 and IOI Properties to jointly develop the redevelopment project. Subsidiaries of IOI Properties have been appointed to be the sole project manager and property manager for the redevelopment of the commercial property.

Nevertheless, the outlook for IOI Properties in Singapore remains positive as the company completed the IOI Central Boulevard and plans to launch Marina View Residence by early next year, Lee said.

The company is targeting full tenancy by next year for IOI Central Boulevard, a Grade-A office tower and the company’s largest wholly owned development in Singapore, he said, adding that he is optimistic that Marina View Residence luxury condominiums will get a “good” take-up rate.

At the time of writing, shares of IOI Properties were unchanged at RM2.31, giving the group a market capitalisation of RM12.72 billion. Year-to-date, the counter is up 32%.