KUALA LUMPUR: IOI Properties Group Bhd is seeking a 50 per cent stake in One Raffles Place, a prime commercial development in Singapore's central business district, in a potential S$2.4 billion (RM7.65 billion) deal.
In a Bursa Malaysia filing, the group said it jointly submitted an expression of interest with an investment entity managed by CapitaLand Investment Ltd to buy the entire property on a 50:50 basis.
The parties are conducting due diligence and holding exclusive discussions with the vendors to reach mutually acceptable terms, IOI Properties said.
The potential acquisition was first reported in August, with the property then valued at S$2.4 billion.
OUE Real Estate Investment Trust (OUE REIT), backed by Indonesia's Riady family, owns an 81.54 per cent stake in the property through a subsidiary.
United Overseas Bank holds the remaining 18.46 per cent and occupies part of the complex.
The parties are working towards finalising definitive agreements and transaction documents, subject to satisfactory due diligence during the exclusivity period.
One Raffles Place comprises two office towers and a retail podium.
The 62-storey Tower 1 was completed in 1986, while the 38-storey Tower 2 was completed in 2012.
The development also includes a five-storey retail podium with a basement.
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