KUALA LUMPUR (Feb 5): IOI Properties Group Bhd is projected to record a significant earnings uplift following the proposed disposal of industrial land at its IOI Industrial Park @ Banting, with analysts highlighting the transaction as a major catalyst for the company’s financial performance.
Research firms estimate that the proposed sale of 136 acres of industrial land could increase the group’s net profit for the financial year ending June 2027 (FY2027) by roughly 33% to 42%. The deal is also expected to deliver a gross margin of about 60%, reflecting the premium pricing achieved for the site.
Analysts noted that the pricing is supported by several key advantages, including infrastructure-ready land, strong logistics connectivity, and proximity to Kuala Lumpur International Airport and Port Klang. These factors are especially important for sectors such as data centres and advanced manufacturing, where speed of development and operational certainty are critical.
Following news of the transaction, IOI Properties’ shares climbed to RM3.26, marking a new high since its listing, with the stock having risen more than 20% year-to-date.
Remaining Land Bank Offers Further Upside
The RM741 million transaction with Bridge Data Centres represents only part of the potential value within the Banting development. IOI Properties still retains approximately 186 acres in the same industrial park, which could either be developed or sold in stages.
Analysts believe that securing a major technology occupier as an early buyer strengthens the park’s positioning and could improve both marketability and pricing power for the remaining land parcels. The presence of anchor tenants often accelerates demand, particularly in the fast-growing digital infrastructure and logistics sectors.
Expansion Plans Beyond Banting
In addition to Banting, IOI Properties is reportedly in negotiations involving land within the 1,100-acre IOI Industrial Park @ Iskandar Malaysia, where demand for industrial space—especially in areas linked to the Johor–Singapore Special Economic Zone—continues to grow. There is also potential to expand the project to accommodate further investments.
Implications for Industrial Property Demand
The strong interest in large-scale industrial developments reflects a broader trend across Malaysia, where technology, logistics, and data centre operators are actively seeking well-located industrial land with ready infrastructure. This trend is not limited to Johor; demand for industrial land in Selangor and industrial property in the Subang area remains robust due to their established logistics networks and proximity to Kuala Lumpur.
Similarly, companies supporting these industrial ecosystems—from engineering firms to regional headquarters—continue to drive demand for office space in Bukit Jalil, factory facilities in Puchong, and strategically located commercial property in KL, particularly in areas with strong connectivity to industrial corridors.
As industrial parks mature and attract high-value tenants, developers capable of delivering infrastructure-ready land in strategic locations are increasingly well-positioned to capture the next phase of Malaysia’s industrial and logistics growth.
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