IGB REIT Expands Asset Base to RM8.09 Billion After Completing Acquisition of Mid Valley Southkey Mall

IGB Real Estate Investment Trust (IGB REIT) has officially completed its RM2.65 billion acquisition of The Mall, Mid Valley Southkey (MVS Mall) in Johor Bahru, significantly expanding its asset base and strengthening its position as one of Malaysia’s most resilient retail REITs.

With the acquisition now finalised, IGB REIT’s total assets under management have surged from RM5.44 billion to RM8.09 billion, marking a major milestone for the trust.

Acquisition Structure: RM1 Billion Cash + New Unit Issuance

In a statement, the REIT said the purchase was completed through a combination of:

• RM1 billion cash, financed by

• RM1.03 billion AAA(s)-rated medium-term notes issued through IGB REIT MVS Capital Bhd at a blended rate of 3.79%, and

• RM1.65 billion in new unit issuance, equivalent to 699.15 million units priced at RM2.36 each, scheduled for listing on Nov 21.

The financing structure allows the trust to maintain manageable gearing levels while securing a high-quality, yield-accretive retail asset.

MVS Mall: Fully Occupied, Strong Location

MVS Mall sits at the heart of the Mid Valley Southkey integrated development in Johor Bahru. The mall is:

• Fully occupied

• Offering 1.53 million sq ft of net lettable area

• Positioned in a rapidly growing cross-border consumer hub influenced by Johor–Singapore economic activity

IGB REIT Management Sdn Bhd said the asset is expected to contribute stable recurring income, backed by strong footfall and resilient demand from both domestic shoppers and the Singaporean market.

Strengthening a Premier Retail Portfolio

With this acquisition, IGB REIT now owns:

• Mid Valley Megamall

• The Gardens Mall

• The Mall, Mid Valley Southkey

This positions the trust as the operator of three dominant retail destinations—two in the Klang Valley’s core commercial belt and one in Johor Bahru’s rising metropolitan zone.

The move also reinforces investor confidence in centrally located commercial property in KL, which continues to benefit from strong consumer activity and high tenant retention.

Broader Market Context

While IGB REIT focuses on retail assets, the Klang Valley’s wider property landscape continues to be supported by:

• Growing interest in industrial land in Selangor for logistics and data centre expansions

• Demand for office space in Bukit Jalil from business hubs and tech-driven occupiers

• Increased leasing in industrial property in the Subang area, a key manufacturing cluster

• Sustained SME activity around factory locations in Puchong, a strategic industrial corridor

These market movements complement the overall resilience of Malaysia’s commercial and industrial sectors, reinforcing investor appetite for high-quality real estate.