IOI plans to relist property business

IOI Corp, Malaysia's second-biggest palm oil planter by market value, said it plans to relist its property business after expanding its international reach, three years after staging a buyout.

"Yes, we plan to but there's no timeframe," Executive Director Lee Yeow Chor told reporters today in Malaysia's southern Johor state. "We think after all these big investments that we're doing, when we think people can see the visible results, that's the time we'll list."

IOI Properties Bhd, its real estate arm, has a 26-year track record, starting out in township development in Malaysia. It's now expanding abroad, starting with Singapore. The Putrajaya-based group generated RM719 million (US$227 million), or 27 percent of its operating income, from its property and hotels operations in its last financial year ended June 2011, according to data compiled by Bloomberg.

"I will be cautious on their listing plan here," Scott Lim, who manages RM380 million as chief executive officer of Kuala Lumpur-based MIDF Amanah Asset Management Bhd, said by phone.

"Malaysian property companies' valuations have come down a lot. Bank Negara's lending curbs have actually dimmed prospects for the sector."

IOI hasn't decided whether the property unit would be listed in Kuala Lumpur or Singapore, Lee said. -- Bloomberg