in this case, isn't ksl will be better option? they also bought many lands and it is still a net cash company.

but their borrowing shoot up to sky as well

Demand for AI-capable infrastructure is causing server buyers to significantly up orders for enterprise solid state drives (SSDs), and this is having an inflationary impact on the price of flash-based storage units.

These details come courtesy of market watcher TrendForce, which estimates that the growth rate of SSD demand for AI applications is likely to exceed 60 percent, with suppliers accelerating development of higher capacity products.

The inevitable downside of ballooning demand for enterprise SSDs is a spike in prices. Contract prices for this category rose by more than 80 percent over the period from 4Q23 to 3Q24, TrendForce claims.

SSDs play a key role in AI model training thanks to their low latency and high throughput. They are primarily used for storing model parameters including weights and deviations, the analyst says, but are also useful for creating checkpoints - periodically saving a snapshot of AI model progress to aid recovery in case of interruptions.

The flash-based devices are useful in inferencing too, where SSDs allow for data updates to models in real time to fine-tune outcomes. As more information is generated, the storage capacity required also increases, making high-capacity SSDs such as TLC/QLC 16 TB or larger the preferred choice for these applications.

As a consequence, the market for AI server SSDs has seen an upswing in demand for products larger than 16 TB from the second quarter onwards, TrendForce reports. It estimates that overall capacity of AI-related SSDs procured during 2024 will exceed 45 EB (exabytes), where 1 EB is equal to 1,000 petabytes or a million terabytes.

Meanwhile, demand for AI servers is touted to push the average annual growth rate for SSDs to more 60 percent over the next few years, with SSDs that target AI potentially rising from 5 percent of total NAND Flash consumption in 2024 to 9 percent in 2025.

Earlier this year, system builder Dell warned of a hike in both DRAM and SSDs prices of about 20 percent, saying it expected to see "a step function in cost in the second half of the year driven primarily by DRAM and SSD," and it would be forced to "adjust its prices accordingly."

An earlier report from TrendForce also revealed the growth in NAND flash revenue among chipmakers; it was up 28.1 percent to $14.71 billion in the first calendar quarter of 2024, fueled by demand for enterprise SSDs to fit out servers for AI processing.

One SSD maker, Western Digital, recently reported revenue up 41 percent to $3.8 billion for the quarter ending June 30, compared with the same period last year, and said it expects enterprise SSDs to represent a "double-digit percent share" of its portfolio mix for its fiscal 2025.

IDC's Senior Research Director for EMEA Andrew Buss agreed AI demand is propelling the price of SSDs, as well as other components.

"GenAI demand is certainly driving up demand for high performance storage, and this is resulting in some limitations in NAND flash availability which has had the tendency of driving up storage prices," he told us.

From personal experience Buss has noticed consumer SSDs have seen "a significant and sustained uplift in overall price for the capacity."

Trendforce says that in response, suppliers are accelerating process upgrades and aiming for products that user higher density NAND flash components to drive up capacity, and this will eventually produce 120 TB enterprise SSDs. ®

Demand for AI-capable infrastructure is causing server buyers to significantly up orders for enterprise solid state drives (SSDs), and this is having an inflationary impact on the price of flash-based storage units.

These details come courtesy of market watcher TrendForce, which estimates that the growth rate of SSD demand for AI applications is likely to exceed 60 percent, with suppliers accelerating development of higher capacity products.

The inevitable downside of ballooning demand for enterprise SSDs is a spike in prices. Contract prices for this category rose by more than 80 percent over the period from 4Q23 to 3Q24, TrendForce claims.

SSDs play a key role in AI model training thanks to their low latency and high throughput. They are primarily used for storing model parameters including weights and deviations, the analyst says, but are also useful for creating checkpoints - periodically saving a snapshot of AI model progress to aid recovery in case of interruptions.

The flash-based devices are useful in inferencing too, where SSDs allow for data updates to models in real time to fine-tune outcomes. As more information is generated, the storage capacity required also increases, making high-capacity SSDs such as TLC/QLC 16 TB or larger the preferred choice for these applications.

As a consequence, the market for AI server SSDs has seen an upswing in demand for products larger than 16 TB from the second quarter onwards, TrendForce reports. It estimates that overall capacity of AI-related SSDs procured during 2024 will exceed 45 EB (exabytes), where 1 EB is equal to 1,000 petabytes or a million terabytes.

Meanwhile, demand for AI servers is touted to push the average annual growth rate for SSDs to more 60 percent over the next few years, with SSDs that target AI potentially rising from 5 percent of total NAND Flash consumption in 2024 to 9 percent in 2025.

Earlier this year, system builder Dell warned of a hike in both DRAM and SSDs prices of about 20 percent, saying it expected to see "a step function in cost in the second half of the year driven primarily by DRAM and SSD," and it would be forced to "adjust its prices accordingly."

An earlier report from TrendForce also revealed the growth in NAND flash revenue among chipmakers; it was up 28.1 percent to $14.71 billion in the first calendar quarter of 2024, fueled by demand for enterprise SSDs to fit out servers for AI processing.

One SSD maker, Western Digital, recently reported revenue up 41 percent to $3.8 billion for the quarter ending June 30, compared with the same period last year, and said it expects enterprise SSDs to represent a "double-digit percent share" of its portfolio mix for its fiscal 2025.

IDC's Senior Research Director for EMEA Andrew Buss agreed AI demand is propelling the price of SSDs, as well as other components.

"GenAI demand is certainly driving up demand for high performance storage, and this is resulting in some limitations in NAND flash availability which has had the tendency of driving up storage prices," he told us.

From personal experience Buss has noticed consumer SSDs have seen "a significant and sustained uplift in overall price for the capacity."

Trendforce says that in response, suppliers are accelerating process upgrades and aiming for products that user higher density NAND flash components to drive up capacity, and this will eventually produce 120 TB enterprise SSDs. ®

Agreed with boringzack. His yesterday’s is how people to push it to gap up and he sells his ticket to you all. Those who has experience during MCO should know. He will get you to join his paid telegram group. Wakakakakaka

https://www.cnbc.com/2024/07/31/samsung-q2-2024-earnings-strong-ai-demand-lifts-profits.html

https://www.cnbc.com/2024/07/31/samsung-q2-2024-earnings-strong-ai-demand-lifts-profits.html

https://www.reuters.com/technology/nvidia-supplier-sk-hynixs-q2-profit-soars-ai-boom-2024-07-24/

https://www.reuters.com/technology/nvidia-supplier-sk-hynixs-q2-profit-soars-ai-boom-2024-07-24/

Seagate current quarter estimated EPS USD0.74 but reported USD1.05 which 41% higher. Next quarter outlook is USD 1.4 plus minus 0.2..so it is 40% higher than this quarter. So we should expected jcy will benefitted as well

Each coin has 2 faces. One side is the owner selling (it seems like negative) but another side of the coin is the buyer feel the company has greater potential and they are willing to use 0.75-0.79 price to buy from the owner. It cost RM30M+ not small amount.

https://www.digitimes.com.tw/tech/dt/n/shwnws.asp?fbclid=IwZXh0bgNhZW0CMTAAAR1LgPb79VP1oyQ8763eFs_vpThwpsFMxnBmRuSKdY6Lc8PjPieZ9nIXTEI_aem_ZmFrZWR1bW15MTZieXRlcw&cnlid=1&id=0000695302_0SI4MZWJLUT30H33103MN&fc=f28107c652011e38

https://www.digitimes.com.tw/tech/dt/n/shwnws.asp?fbclid=IwZXh0bgNhZW0CMTAAAR1LgPb79VP1oyQ8763eFs_vpThwpsFMxnBmRuSKdY6Lc8PjPieZ9nIXTEI_aem_ZmFrZWR1bW15MTZieXRlcw&cnlid=1&id=0000695302_0SI4MZWJLUT30H33103MN&fc=f28107c652011e38

agreed with skc761103. Maybulk earning is not from normal operation. It keep selling asset to get profit and hence i dont agree with your write out. You should continue your good write out like what you did for ksl but not something like what you didnt above.

it is still not too late to look at ksl....

actually they not necessary to revalue the land. KSL is the property which has highest net profit margin. I suppose this is because their cost for the land is cheap and hence their net profit margin is high when there is new launch.

government removed the subsidy for diesel. Soon they will remove the ceiling price for flour?

suggest you guys have a look at ksl....

SERI ISKANDAR, June 9 — The investigation into the fraud involving more than 600 hectares of Malay reserve land in Perak is underway, and more witnesses will be called up, said Chief Commissioner of the Malaysian Anti-Corruption Commission (MACC) Tan Sri Azam Baki.

He said former Perak executive councillors (exco) would also be summoned.

“This is the second stage after a PTG (Land and Mines Office) officer was charged (in April). We are examining the minutes of exco approval meetings, other witnesses, and these exco members. Prosecution will take place soon,” he told reporters after attending the finals of the Higher Education Institution Anti-Corruption Debate Competition at Universiti Teknologi Petronas, here today.

On April 30, a former deputy registrar of titles at the state PTG was charged at the Ipoh Sessions Court for altering the status of 649.2 hectares of Malay reserve land in the Sitiawan subdistrict in Manjung 12 years ago.

Rosli Che Mohamed, 64, was charged with deceiving the Perak Agricultural Land Board and making it believe that the land with property title No PN 174770-174772, No Lot PT 17527-17529 in Sitiawan was not a Malay reserve land through a Perak PTG’s data correction form on March 25, 2011.

A property company managing director was remanded for three days concerning the case but was released on May 30.

According to Azam, the remand order against the managing director issued by the Magistrates’ Court expired; however, an investigation is ongoing.

In another development, Azam said MACC is applying to freeze the bank accounts of three suspects in the RM1.183 million marriage registration bribery case in Perlis, who were detained on June 5.

“...among the suspects are the Perlis Shariah chief registrar of marriages, and we want to find out what has happened to the money deposited into their accounts, where it has been spent, and so on,” he said.

Three individuals, including a senior officer of the Perlis Islamic Religious Affairs Department and an imam of a mosque in Kangar, are being remanded for five days until June 9 to assist in the investigation. — Bernama


Why waste time at such company with uncertainty? Investor should look for good company like ksl.

@raymondroy Most of us purchase a house by taking loan from bank, hence, the developer has to do progressive claim from bank. This is very normal their receivable increase as they may claim the payment from bank end of the quarter. It won’t be surprised if their receivable remain at such level or even high since they have many new projects launching or under active construction. Past 6 months they spent 300-400M to purchase but their loan from bank didn’t increase. This clearly explain why they have negative cash flow as they use the fund to pay for the land. So based on this, could you enlighten us how they “cook” the book???? If they would cook the book, they already a net debt company instead of a net cash company.

If ksl has alarming numbers, then the rest of the property companies listed at bursa can close shop already. Ksl is the property cum developer company has the best balance sheet among all property counter.

https://theedgemalaysia.com/node/714621

Possible benefit to KSL???

@hng33, during the agm, the BOD did addressed the dividend issue. They reserve the cash for future development and hence you can see the company is keep buying land. Put it another way, you prefer your boss give you yearly 3-5% increment or you prefer every few years they give you a promotion with 10-15% increment?
If KSL keep taking loan to do the expansion, it will eat into their margin. Personally agreed with their management style as they reserve to buy more landbank for future development.

Where the landbank, dont forget that the 2500 acres are mainly in Johor. Johor is hot now and many of their landbank didnt revalue since 15-20 years ago. This is why their profit margin is high. Lageda has 5000 acres of landbank but they have some case on hand, so why we need to bet on it if there is another better opportunity?

Please correct me if i am wrong.

how to define lagenda is undervalue? it is not net cash, it is not lowest PE among all properties company, it is not the company which has most inventory or landbank...cant compare lagenda with mahsing because mahsing has data center news to push the share price. If say most undervalue property company in bursa, it should be KSL. KSL is net cash company, lowest PE among all properties company, the company which generated most profit among all property companies, the company which has highest net profit margin, the company which has plenty of landbank in Johor, main shareholder controlling 60% and above of the issued share.

@greatdreamer, personally think that they will do something like sime darby property did. They will build the data center and rent it to DC operator to generate recurring income. Sime darby, YTL, Sunway all dont have experience in data center but they can hire consultant. This is the only way to create maximum value to the company. Dont forget that KSL has their own construction team.

@Icng123, dude, since when ksl has such announcement? AGM already over....

https://www.techinasia.com/google-investment-singapores-tech-infra-reaches-5b

https://www.techinasia.com/google-investment-singapores-tech-infra-reaches-5b

@sincerestock thanks for your sharing

@sincerestock, thanks for the explanation. I was thinking let’s say the current share price is rm1 and the nta is rm1.5, if the management offer rm1.3 for privatisation, higher chances that the shareholders will reject and currently the owner just holding around 50%+ of the total issued shares. So I wonder how you would have such speculation.

@sincerestock May I know how the dividend correlated to privatisation please? If the management declare dividend, themselves will be benefitted as well and the NTA will drop and hence they can use lower price for privatisation.

previously Karim - Serba also non stop buying its own shares........

https://www.thestar.com.my/business/business-news/2024/05/30/mah-sing-launches-mah-sing-dc-hub-southville-city-with-bridge-data-centres

another data center

https://www.thestar.com.my/business/business-news/2024/05/30/mah-sing-launches-mah-sing-dc-hub-southville-city-with-bridge-data-centres

another data center

https://klse.i3investor.com/web/blog/detail/kianweiaritcles/2024-05-30-story-h-160653896-AI_will_put_pressure_on_company_spend_but_data_storage_will_still_be_ne

https://klse.i3investor.com/web/blog/detail/kianweiaritcles/2024-05-30-story-h-160653896-AI_will_put_pressure_on_company_spend_but_data_storage_will_still_be_ne

During the agm, there is a shareholder asked the management how could those data center projects around JB benefit the company and since KSL has plenty of landbank in JB, is the management has any plan for data center JV. Surprisingly the answer was the group is on discussion with someone on this topic and will update shareholder when it comes true.

the boss mentioned during the agm that they are aggressively acquiring land for future development hence they need to reserve the cash for acquisition as well as the development cost to avoid take loan from bank. In such way, it can increase shareholder value

If notion can run that fast and that high, there is no reason JCY cant due to the fact that JCY's hard disc concentration and total revenue from hard disc is much higher than Notion. As mentioned in the QR, the utilization rate is still below 50% and let's assume it goes to 80% coming quarters, i suppose it can run as fast as Notion.

If notion can run that fast and that high, there is no reason JCY cant due to the fact that JCY's hard disc concentration and total revenue from hard disc is much higher than Notion. As mentioned in the QR, the utilization rate is still below 50% and let's assume it goes to 80% coming quarters, i suppose it can run as fast as Notion.

If notion can run that fast and that high, there is no reason JCY cant due to the fact that JCY's hard disc concentration and total revenue from hard disc is much higher than Notion. As mentioned in the QR, the utilization rate is still below 50% and let's assume it goes to 80% coming quarters, i suppose it can run as fast as Notion.

KUALA LUMPUR (May 15): The Malaysian property market was active in the first quarter of 2024 (1Q2024), recording a 34.3% growth compared to the first quarter a year ago, with more than 104,297 transactions worth RM56.53 billion, a 34.3% jump in transaction value.

Valuation and Property Services Department Director-General Abdul Razak Yusak said in terms of volume, property sub-sectors recorded positive growth in 1Q2024; the commercial sub-sector grew by 33.4%, residential by 16.6%, industry by 14.3%, agriculture by 13.7%, and development land and others by 10.7%.

“The residential sub-sector continues to dominate market activities with over 62,000 transactions, valued at over RM25 billion, comprising nearly 60% of overall property market activities.


“Housing priced at RM300,000 and below dominate the market with 33,500 transactions, comprising more than 50% of total transactions,” he said when presenting the 1Q2024 Real Estate Market Report in a live broadcast on Facebook on Wednesday.

According to Abdul Razak, construction activities also showed positive growth in 1Q2024 when commencements rose to more than 21,300 units, an increase of almost 8% from the previous year, while planned new developments decreased to around 11,000 units.

New residential launches increased by 19.8% to 5,585 units, from 4,661 units in 1Q2023.

The serviced apartment segment saw a 70% spike in completed units to 5,500. Projects starting construction and planned new developments each rose by more than 100% versus the same quarter in 2023.

The Malaysian House Price Index (IHRM) rose marginally by 0.5% to 216.9 points, with house prices averaging RM468,000 a unit, Abdul Razak said.

“All states recorded moderate growth of between 0.5% and 4.6%, except for Kuala Lumpur, Penang, Perak, Melaka and Sarawak, where prices contracted by between 0.2% and 2%.

“Terraced housing remained stable with a positive 1.8% growth, while other types of housing recorded a marginal decrease,” he said.

Completed unsold housing, commonly known as a residential overhang, decreased to 24,208 units worth RM16.49 billion, compared with 25,816 units worth RM17.68 billion in 4Q2023.

Serviced apartment overhang rose by 5.2% to 21,913 units, with a 9.7% rise in ringgit value to RM18.16 billion.

“Serviced apartment units priced between RM500,000 and RM1 million make up 58.1% of the total overhang,” he said.

The performance of private purpose-built offices recorded a marginal increase, he said.

“The occupancy rate of privately owned, purpose-built offices rose marginally to 72%, versus 71.9% in the previous quarter,” he said.

KSL has many projects in Pulai....

KUALA LUMPUR (May 13): AME Elite Consortium Bhd (KL:AME) is selling 11 plots of freehold land measuring over 34.91 acres in Pulai, Johor Bahru, for RM209.84 million cash to Hong Kong-based data centre operator Digital Hyperspace Malaysia Sdn Bhd (DHM).

In a filing with Bursa Malaysia on Monday, the property developer said the plots of land are located in i-TechValley — a 170-acre industrial park at the Southern Industrial and Logistics Cluster (SILC).

DHM is a wholly owned subsidiary of Quantum DC (HK) Ltd, which primarily provides infrastructure for hosting and data processing services, AME Elite said.

AME Elite is selling the 11 plots of land through its wholly owned subsidiaries Pentagon Land Sdn Bhd and Greenhill SILC Sdn Bhd. This sale is subject to approvals from the Johor State Government Office and other relevant authorities if the relevant land registry requires a no-objection letter from the Economic Planning Unit.

The transaction valued the land at RM138 per sq ft on a “willing-buyer willing-seller” basis.


According to CBRE WTW Valuation & Advisory Sdn Bhd, the plots of land were sold at a slight premium to the market based on previous transactions in Pulai. It said the last transacted price in Pulai was between RM120 and RM138 per sq ft.

Over the last one month, there has been a sharp increase in land demand in Pulai, especially from data centre operators. The latest one was Axis Real Estate Investment Trust (Axis REIT), which disposed of 26.96 acres of industrial land in Axis Steel Centre @ SILC, Johor for RM162 million to a data centre operator. It did not disclose the identity of the purchaser. The transaction valued the land at RM138 per sq ft.

AME Elite estimated the company would lock in gross proceeds of RM155.04 million from the land sale. The proceeds have been earmarked to fund development costs relating to i-TechValley, including land, infrastructure and construction, as well as future industrial property development and investment projects, including land acquisitions and joint ventures.

i-TechValley is AME Elite's latest ongoing industrial park development project with an estimated gross development value of RM1.5 billion spanning over five years.

Launched in October 2022, i-TechValley has achieved a take-up rate of approximately 30%.

Meanwhile, the remaining RM54.8 million will be used for working capital and related expenses for the proposed disposal.

The proposed sale is expected to be completed by the first quarter of 2025.

Trading of the securities in AME Elite has been suspended from 9am to 5pm on Monday and will resume on Tuesday. The counter was last traded at RM1.78, giving it a market value of RM1.14 billion. Its share price hit an all-time high of RM1.88 on Feb 9 this year.

AME Elite’s net profit for the third quarter ended Dec 31, 2023 (3QFY2024) surged 136% to RM21.92 million, from RM9.28 million a year earlier, mainly due to a fair value gain of RM13.12 million on investment properties, arising from the sale of industrial properties to AME Real Estate Investment Trust.

Revenue for 3QFY2024 grew 31.16% year-on-year to RM176.21 million from RM134.35 million.

For the nine months ended Dec 31, AME Elite’s net profit rose 9.55% to RM67.02 million from RM61.17 million on the back of a 51% surge in revenue to RM632.06 million from RM418.71 million.

Source: TheEdge - 14 May 2024

There are more than 900 acres of land in the state of Johor. Most importantly, 75% of it yet to revalue at least 10 years.

@hng33 Do you mind to share more on how the REITS listing works?

Of course, the extent of Singapore’s active management involves multiple aspects. Particularly for property developers, the regular rounds of cooling measures figure front and centre in their decision-making. Counterintuitively, Lee is viewing this policy stance positively. “I would rather see a situation where the government intervenes early than to let things blow out of proportion. China is a very good example. The market should be gradually trending up, not on a sharp curve,” he says.
Following the latest cooling measures announced in April, foreigners are to pay a hefty additional buyer’s stamp duty (ABSD) of 60%, double what they were obliged to pay earlier. According to the government, foreigners accounted for just 4% of buyers in the last three years.
Permanent residents, meanwhile, are to still pay just 5% for their first property — a yawning gap versus foreigners. Besides citizens, Lee suggests demand will come from newly minted PRs, estimated at tens of thousands a year. “The first thing PRs do when they receive their new status is to buy a property. So, in a way, I’m quite confident that the demand will still be there,” says Lee.
Furthermore, in Singapore, Lee points out that property prices in the Outside Central Region (OCR) and Rest of Central Region (RCR) have been gaining more rapidly than in the Core Central Region (CCR), where Marina View is located. “It is about time people appreciate the attractiveness and convenience of living in the CCR,” he says.
Lee also points out that even with the 60% ABSD, Singapore’s top-end property prices lag the global cities of London, Hong Kong and Shanghai. This is a set of buyers with a global perspective who know these markets well. Compared to these cities, Singapore has a certain level of appeal. “They are used to these kinds of numbers. It is not a shocking number to them. It is whether you can create the product, create something they want to have,” he maintains.
Complacent hospitality industry?
Lee believes that the Singapore hospitality scene can do better. He has seen how every September and October are full of global-level events drawing in private bankers, family offices and big corporations, bookending the weeks before and after the annual F1 night race. For example, Malaysia’s Prime Minister Anwar Ibrahim was willing to fly in just to speak for half an hour at the Milken Institute Asia Summit, notes Lee.
During this period, hotels here enjoy full occupancy and much higher rates. Yet, Lee feels that the incumbents have gotten somewhat complacent and that the Singapore hospitality industry has not upped its game enough to further capture the business potential from this kind of global crowd, with no new luxury hotel property launched for years to charge higher rates potentially.
For the upcoming hotel component of Marina View, IOI Properties has turned to its long-time hotel management partner, Marriott International, to introduce a new concept under its W Hotel brand.
Is IOI Properties already eyeing yet another project in Singapore? The immediate answer is “yes”, and this time round, it will be in retail. “I can’t talk too much about that, but it is going to be something that will transform Singapore,” says Lee.

More than a decade ago, IOI Properties ventured into a bigger project, teaming up with Ho Bee Land H13 0.00% to complete two landmark sea-facing residential projects at Sentosa Cove. This was when Resorts World Sentosa had transformed the laid-back, touristy island into a playground for the rich and famous.
The much bigger project, South Beach Development, came about in 2011 indirectly — after two of the original three partners fell out, opening the door for IOI Properties to partner with CDL instead.
Lee is happy to have gotten involved as South Beach put the company “on a different map”. In the past, IOI Properties was known for its low-cost township projects in Malaysia. “But when you come to Singapore, this is a project that is in a different class, and we made good money out of it,” adds Lee, noting how all 190 South Beach Residences units were sold at average prices of more than $3,000 psf.
In addition, South Beach Tower, the office portion, is delivering a steady income stream, thanks to tenants such as Facebook, Lego and management consultancy Bain & Company. JW Marriott Hotel Singapore South Beach, the hotel component, suffered during the pandemic like everyone in the hospitality business. But once travel restrictions were lifted, business has rebounded very strongly.
With South Beach and IOI Central Boulevard Towers, IOI Properties has created a bigger appetite for bigger projects here. “If I am already playing in the Champions League, why should I go back to the Premier League?” says Lee, when asked if he will still look at residential projects in the range of hundreds of units.
Two years ago, in September 2021, IOI Properties triggered the hotel-cum-residential white site at Marina View, minutes from Central Boulevard Towers. IOI Properties ended up as the only bidder, paying $1.5 billion. No other developers were in the mood to take such a big bet with varying pandemic restrictions still in place.
Yet, Lee believes his timing was right and that his upcoming product will be compelling. He points out that market talk has it that Skywaters Residences, the residential component of the ongoing redevelopment of 8 Shenton Way, a couple of hundred metres away from Marina View, is to be priced at $6,000 psf onwards.
As another yardstick for comparison, Lee notes that South Beach Residences was launched at around $3,000 psf. Since then, resale prices have risen. A record of $4,748 psf was seen in October 2021. The most recent transaction was done at $4,504 psf in February this year.
Although CBD living was never fashionable, this has changed with the government introducing more residential developments and as people’s attitudes and habits change. As such, the CBD no longer falls silent after 9pm on weekdays. Traditionally, residential properties fetch a premium in Singapore if they are located near reputable schools. Lee believes other attributes, such as the location within the CBD, where there are hardly any schools, have become more important. Borrowing the famous slogan from Singapore’s Ministry of Education, Lee, who was at St Patrick’s School here before qualifying as a lawyer after graduating from King’s College London, quips: “Every school is a good school.”

IOI Central Boulevard Towers enters the market when the view of commercial properties as an asset class is not the most favourable. Lee agrees that many workers, following the pandemic, have gotten used to working from home because of the flexibility. However, he points out that most households are confined to relatively small apartments and “the living conditions are just not conducive” for work. As such, Lee sees the flight towards quality further firming up in the office sector, where an attractive location will naturally draw better demand.
Another reason for his optimism was that the big multinational tenants, which IOI Properties is already servicing with South Beach Tower, are all working towards certain environmental, social and governance (ESG) goals. One way they are doing so is to locate themselves in newer buildings with significant advantages in sustainability features over older properties.
Lee also notes that for the multinational tenants, once they relocate, they tend to stay put for years and commit to rental rates amounting to tens or even hundreds of millions of dollars over the lease period. Given the scale of their operations, they are not in the habit of changing offices frequently.
Specifically for IOI Central Boulevard Towers, IOI Properties reportedly has signed two anchor tenants: US e-commerce giant Amazon and leading US bank Morgan Stanley, which has been at its current location here for 30 years.
see also: IOI Properties readies Singapore-listed office REIT as income profile shifts
According to Lee, IOI Central Boulevard Towers has already signed a committed occupancy of 40%, with another 20% in advanced talks. He is confident that after this property receives its TOP sometime in 1Q2024, it can achieve more than 90% occupancy at around $14 psf to $15 psf per month, which is a significant premium above $11.33 for Grade-A space in 2Q2023, according to JLL.
Because there is hardly any vacant office space for now and no significant new supply in the next five years, Lee is upbeat that his office offerings can eventually command $18 psf or even closer to $20 psf.
Economies around the world are not exactly doing well and that Singapore’s open economy is prone to volatility. Even so, Lee is confident not just with his product but also with Singapore as a market, and that is why IOI Properties is increasing bigger bets here. “The government knows what it is doing. And it knows what business people want and need from the government,” he says.
Next stop: Marina View
IOI Properties is not a new property player here. In 1996, it won the bid for a land parcel along Prinsep Street, which was developed into the 12-storey IOI Plaza, and subsequently sold to Singapore Pools in 2010 and renamed.

With IOI Central Boulevard Towers and the upcoming Marina View, IOI Properties’ CEO Lee Yeow Seng has shown his appetite to undertake multi-billion developments here
Lee Yeow Seng remembers clearly how, as a young boy, he often followed his father, Lee Shin Cheng, across remote Sabah to develop one tract of land after another into palm oil plantations. From such visits, the boy learnt to appreciate the effort needed to clear the land, build the infrastructure, plant the crops, and tend to the growing trees before the harvest some years later. By the time he passed away in 2019, Lee Shin Cheng had built up a palm oil empire that overtook those that used to dominate this industry.
Along the way, the founder of the IOI Group earned the nickname “The Tree Whisperer” for talking and singing to the palm oil trees, presumably to coax them to be more fruitful.
“My father went through this kind of effort, going through the most difficult path, because he didn’t have any opportunities,” says Lee Yeow Seng, the younger son of Lee Shin Cheng, in an interview with The Edge Singapore.
Today, Lee, tapping on the base built by his father, is seizing the market opportunities that have come his way. However, Lee readily confesses despite his experience in the plantations in his formative years, his passion today lies more in property, which is the other key business started by his father.
“That’s also another form of development. It is satisfying to see nice buildings coming up on previously empty land,” says Lee, who is CEO of IOI Properties. It is separately listed from IOI Corp, which is headed by his elder brother Yeow Chor.
Making bigger bets
While IOI Properties maintains a strong presence in its home market Malaysia, at least for this year, Singapore will be the market where Lee has been paying a lot more attention. Out of the estimated RM10.6 billion ($3.07 billion) in total gross development value (GDV) of projects to be launched in its FY2024 ended June 30, 2024, Malaysia-based projects compromise just over RM2 billion, whereas the GDV of its Singapore project, specifically, Marina View Residences, will have a GDV of RM8.56 billion.
Almost concurrently, the company is readying its key investment property here for business. On Aug 28, IOI Properties held the topping-out ceremony of IOI Central Boulevard Towers, a Grade-A office development. In November 2016, IOI Properties paid a then-record $2.57 billion or $1,689 psf per plot ratio (ppr) for the site. The development, slightly delayed by the pandemic, consists of two office towers of 16 and 48 storeys sitting on top of a seven-storey podium. It will have 1.26 million sq ft of office space and 30,000 sq ft of retail and F&B spaces.
IOI Central Boulevard Towers also marks IOI Properties’ largest wholly-owned development in Singapore, following the South Beach Development, a joint venture with City Developments (CDL).

The “vastly” expanded investment property portfolio, says Tan, will give IOI Properties a heavier, steadier stream of recurring cash flow to fund expansion at a faster pace than the traditional develop and sell method. “We see FY2024 as the pivot point as the group enters into a new phase of growth which should propel it to new heights,” he adds.
And of course, IOI Properties is active in China too, where it has undertaken numerous projects in Xiamen, a key city of Fujian province, where the Lee family can trace its ancestry. As widely reported, China’s property market is in a steep downturn because of the tough lending curbing measures introduced by the government, which was induced into a further drop when the pandemic happened.
Sensing that the cooling might have gone overboard, the Chinese government has allowed some loosening but the downward momentum will take a lot more to wrestle back up. Citing the “very serious structural” change already inflicted, Lee warns that this downturn will not be over soon. “It is not going to be so simple this time,” he figures, adding that things might become worse before the eventual recovery. If there’s one silver lining, it might be that China will learn not to be too fixated on properties in the future. And for now, there are no new plans for further investments in China.
Meanwhile, IOI Properties remains very active in its home market Malaysia, where it, in Lee’s own words, maintains its best team — including long-serving colleagues trained personally by his father over the years.
Last year, IOI Properties opened the second phase of a key project IOI City Mall. With this addition, the company further marks its position as a leading developer and operator of shopping malls in Southeast Asia. For the second phase, many interesting new tenants such as Swiss Watch Gallery, carrying a range of famous brands, as well as fashion brand Michael Kors have been brought in. For the third phase, Lee plans to go even more upmarket by bringing in brands such as those in the LVMH stable.
Thanks partly to government support, consumer confidence remains buoyant, as can be seen from footfall and tenant sales, especially when news of the next round of handouts was out. “You only need to announce a handout of RM5,000 and they will spend RM10,000. Malaysians in general are always very optimistic,” says Lee. “As landlords, of course, we are very happy because we take a percentage of their turnover.”

Over the past six months, IOI Properties shares have surged by around 50% to close at RM1.77 ($0.51) on Oct 18. In contrast, many listed developers here have traded sideways at best. Rather than press on this distinction, CEO Lee Yeow Seng diplomatically points out that different property companies are going through different phases. Some might be taking a hit from the valuation of their London assets; others may be hurt because of exposure in China and Hong Kong.
Despite the recent gain, IOI Properties’ share price is still at 0.44x of its NAV per share of RM4.05 as at June 30. Lee prefers to focus on how he can create value for shareholders rather than lamenting about this gap.
With the completion of IOI Central Boulevard Towers, IOI Properties will stand to collect an annual income of around $200 million, estimates Lee. This will add significantly to the company’s revenue from investment properties, which stood at RM491 million in FY2023, up from RM364 million in FY2022. As a proportion of total revenue, that’s an increase from around 14% to nearly a fifth. With this additional cash flow, the company will be able to reduce its gearing, which stands at 67.5% as at June 30.
More interestingly, the company will have a good platform to recycle its capital via a Singapore-listed office REIT, which will also include IOI Properties’ share of South Beach Tower. City Developments, if it wants to put its share in the REIT, will be a bonus, but IOI Properties can go ahead alone, says Lee. “It is about time we unlock value for our shareholders,” he adds.
Lee believes that a REIT listed in Singapore makes sense because this is an asset class readily understood by investors here. Upon completion of IOI Central Boulevard Towers, IOI’s logo will claim its spot in the Singapore CBD skyline. This improved visibility — both figuratively and literally — will presumably lead to better recognition among investors too.
He disagrees with suggestions that IOI Central Boulevard Towers is too new to be included in a REIT. Some REIT managers figure they need to let a particular asset “stabilise” first — with at least one leasing cycle of three years — before selling the asset into a REIT. Not so from Lee’s perspective. “If I can lock in at $15, I am happy to leave something behind on the table for other investors,” says Lee, referring to the rental rates and upside he is projecting from leasing out IOI Central Boulevard Towers.
Besides the office REIT, Lee is potentially securitising some of the mall and hospitality assets in Malaysia too. As for IOI Properties itself, Lee will keep its primary listing in Malaysia.
Based on Bloomberg data, IOI Properties is viewed positively by all seven analysts covering the stock. “FY2024 represents an important execution year for IOI Properties given the execution for two of its largest projects, namely the commencement of IOI Central Boulevard Towers and the launch of Marina View Residences,” writes Hong Leong Investment Bank analyst Tan Kai Shuen, the most bullish with his RM2.48 price target, raised from RM2.10 previously.
In his Oct 5 report, Tan notes that IOI Properties is on track to achieve new records among Malaysian developers from the more than RM10 billion in gross development value (GDV) of new projects to be launched. With an impending RM20 billion portfolio of investment properties following the addition of IOI Central Boulevard Towers, IOI Properties would be overtaking KLCC REIT which owns RM15.7 billion worth as at June 30.