KUALA LUMPUR, April 20 — IOI Properties Group is ramping up its Singapore push with a S$2.476 billion (RM7.71 billion) acquisition of Asia Square Tower 2, in one of the largest office deals in the city-state in recent years.

The Malaysian developer said it will acquire a 100 per cent interest in the Grade A office tower from CapitaLand Integrated Commercial Trust, adding a flagship asset in the Marina Bay financial district to its growing portfolio.

The agreed price reflects a S$50 million discount to the property’s market valuation, based on an independent appraisal by Savills.

Group chief executive Datuk Lee Yeow Seng said the deal underscores IOI’s long-term confidence in Singapore as a core investment market.

“Singapore remains a cornerstone market for the Group, underpinned by its stable socio-political environment and strong global standing as a premier financial and business hub in South-east Asia,” he said.

“This latest acquisition reflects IOIPG’s continued conviction in prime Singapore assets, which offer stable recurring income streams supported by strong market fundamentals.”

The 46-storey Asia Square Tower 2 offers roughly 773,000 sq ft of net lettable area and is located in the heart of the central business district, with direct connectivity to IOI’s existing Central Boulevard Towers via an elevated pedestrian link.

The purchase will lift IOI’s Singapore property investment assets under management to about S$10 billion, cementing its position as a major landlord in the CBD with a combined portfolio spanning 2.57 million sq ft.

The group said the building’s strong fundamentals — including a 95.8 per cent occupancy rate as at end-March — are expected to support steady rental income and long-term value creation, amid limited new office supply in the CBD.

IOI plans to leverage its existing asset management capabilities across its Singapore portfolio, which includes IOI Central Boulevard Towers and South Beach Tower, to capture lease renewals and drive operational efficiencies.

The enlarged platform will also allow the group to offer a broader range of office floor plates — from about 15,000 sq ft to 30,000 sq ft — catering to diverse tenant needs and enabling expansion within its ecosystem.

The acquisition comes as IOI continues to scale its presence in Singapore, betting on resilient demand from multinational tenants and the city’s status as a regional financial hub, even as global office markets face structural shifts.