What happened
IOI Properties of Malaysia and Singapore's CapitaLand Investment (CLI) have moved into an exclusive phase in their bid for One Raffles Place, an office complex in Singapore's central business district. The partners split their offer evenly and submitted it to the current owners, the trust OUE REIT and the bank UOB.
IOI Properties chief executive Lee Yeow Seng described the situation on Wednesday, 7 October 2026, in an interview with The Business Times at the Forbes Global CEO Conference in Singapore. He said the bid went in around three months ago. Due diligence is under way, and the parties are negotiating final terms for the sale contract. Earlier press reports put the indicative value at between S$2.3 billion and S$2.4 billion.
The asset and its land rights
One Raffles Place has two office towers of 62 and 38 floors, plus a retail podium on six levels. Total net lettable space is reported at roughly 875,000 square feet. Tower One is one of Singapore's three tallest buildings.
The complex occupies four plots with different lease terms. One plot is held on an 841-year lease that began in November 1985. The other three carry 99-year leases, two dating from May 1983 and one from November 1985. Lee observed that such a long tenure is, in practical terms, close to outright ownership.
OUE REIT currently controls the property with an effective 67.95% interest through OUB Centre, the registered owner. UOB has an 18.46% beneficial interest and also owns 10% of OUB Centre.
IOI's plans and its debt
The purchase is part of IOI's drive to grow its commercial holdings in Singapore. There is no settled plan yet to rebuild the podium or Tower One. The first step after completion would be a better retail tenant mix, Lee said, because the area is full of office workers with too few places to eat.
To fund growth, IOI is preparing a capital recycling exercise, with DBS and Jefferies as lead advisers. It intends to sell up to 40% of its interests in IOI Central Boulevard Towers and the South Beach office tower. Those two assets are valued at roughly S$6 billion, and the sale could release about S$2.4 billion. Likely buyers include private equity and sovereign wealth funds.
IOI's debt has risen 40% over four years. Lee's answer was that the group does not buy without a plan. It intends to securitise assets through a listed REIT (real estate investment trust) or a private fund. IOI's prime Singapore office holdings are worth close to S$12 billion.
Rents climb, flats sell slowly
Higher rents are lifting returns. At South Beach, office rents rose from S$9 to about S$11 per square foot over two years, and average room rates at the JW Marriott there doubled from roughly S$400 to S$800. Rents at IOI Central Boulevard Towers are now near S$18 per square foot, against about S$8 when the site was bought in 2016.
Residential sales are a different picture. The branded W Residences Singapore Marina View has 683 units, and just 15 have sold since marketing began in 2025, at prices from S$1.9 million to S$10.9 million. That is around 2% of the project. Lee said prices will not be cut, and unsold units can be leased to expatriates and other foreigners instead.
Foreign buyers and ABSD
Lee was openly critical of Singapore's additional buyer's stamp duty (ABSD), which charges foreigners 60% on any home purchase. In his view, removing it for foreign buyers should be the government's first move, since the tax is far too harsh.
He attributes his confidence in Singapore to strong governance and policy stability. Lee spent six years studying in the city and two years working there. His personal goal is for IOI to rank among Singapore's three largest developers.
What it means for Bali
The deal shows how major Asian capital views leased land. Foreigners on Bali cannot hold freehold title, so they buy villas on leasehold, known locally as Hak Sewa. In Singapore, towers worth billions sit on leased plots and still attract buyers. What matters is the remaining term and the legal soundness of the lease.
W Residences is instructive too. Rather than discount, the developer is turning unsold flats into rentals, a reminder that premium branded housing can take years to sell. With ABSD at 60%, Singapore remains an expensive entry point for foreign home buyers, while Indonesia competes for the same buyers under very different rules.