IOI Property's major shareholder proposed that the company participate in the Shenton House redevelopment project in Singapore.

IOI Property has reported to the Malaysian Exchange on Tuesday that it has received a proposal from CEO Lee Yeow Seng to participate in the Shenton House redevelopment project in Singapore, which Lee Yeow Seng bought for SGD 538 million (approximately MYR 1.873 billion) in his personal capacity.

According to the announcement, the proposal will involve IOI Property acquiring the equity of Shenton 101 Company and jointly developing this redevelopment project.

Lee Yeow Seng revealed that since both Shenton 101 Company and IOI Property are involved in Singapore's real estate development and investment, they are likely to have conflicts of interest.

"Therefore, this proposal aims to allow IOI Property to acquire the equity of the latter and thus resolve the conflict of interest issue."

Resolving the conflict of interest issue

Lee Yeow Seng emphasized to the company that Shenton 101 Company is fully prepared to rebuild Shenton House according to the terms, and the above proposal is only to address potential conflicts of interest.

The above redevelopment project is scheduled to start at the end of 2025.

Lee Yeow Seng will be given four months to evaluate the proposal, which can be extended for another two months by mutual agreement.

According to the announcement, Shenton House is held by Shenton 101 Private Limited, which is fully owned by Lee Yeow Seng's company.

IOI Property closed at MYR 2.25 on Tuesday, down 4 sen or 1.8%, with a turnover of 7.08 million shares.