IOI Properties Group Bhd will play catch-up with plantation heavyweight IOI Corp Bhd in offering high dividends, says its executive chairman Tan Sri Lee Shin Cheng.
He said IOI Properties is looking at more long-term property investments and eyeing foreign markets to transform itself into a multi-national property entity and boost earnings.
“It is possible for us to expand overseas and we may look at London as a new market for the group. We are looking at all angles to expand so as to benefit the shareholders who have been supporting IOI group over the years.
“Hopefully, in time to come, we can declare high dividends for IOI Properties to match that of IOI Corp, which has been distributing 50 per cent of its net profit as dividends,” he said.
Lee was speaking to Business Times after inking a deal, here, recently with Starwood Hotels and Resorts to manage its two hotels in Puchong, Selangor, and Putrajaya.
IOI Properties made a strong debut on Bursa Malaysia in January with a 70-sen premium over its reference price of RM2.51, making it one of the largest property companies on the bourse with a market capitalisation of RM10.4 billion.
Its market cap now is RM8.2 billion with the stock hovering around the RM2.52 range.
However, Lee said IOI Properties’ market cap was not that crucial as he is focusing on the group’s sustainability and growth.
IOI Properties owns some 4,000ha, with 95 per cent of it in Malaysia and the rest in Singapore and China. It has 20 projects with gross development value of RM5 billion. The group will be launching RM16 billion worth of new projects over the next three years as it is bullish on the market.